Pantera Minerals (ASX:PFE), ASX listed lithium explorer, is thrilled to announce the acquisition of 100% of Daytona Lithium, a key player located in the heart of the USA lithium brine industry in Southwest Arkansas. This acquisition marks a significant milestone in Pantera’s growth strategy, further cementing its position in the lithium market.
A Binding Implementation Agreement has been executed for the purchase of 100% of the issued share capital in Daytona Lithium. This strategic move not only expands Pantera’s footprint in the region but also strengthens its dominant acreage across Arkansas' renowned 'Smackover Formation’. Currently, Pantera holds 10,319 acres under lease, with negotiations underway for an additional 9,000 acres.
In a significant development, Mr. Tim Goldsmith, former CEO of Rincon Mining Pty Limited, which was acquired by Rio Tinto for US$825 million, has been appointed as a Strategic Advisor to Pantera. Mr. Goldsmith’s vast experience and success in the lithium industry will be invaluable in developing Pantera’s lithium brine potential.
The ‘Smackover Formation’ is globally recognized as a significant lithium region, featuring major industry players such as Exxon Mobil (NYSE: XOM), Standard Lithium (NYSE: SLI), and Albemarle Corporation (NYSE: ALB). Notably, Southwest Arkansas is home to North America's only large-scale, continuously operating Direct Lithium Extraction (DLE) plant, a testament to the region's strategic importance in the lithium brine industry.
Pantera plans to employ conventional oil and gas drilling methods to access lithium-rich brine approximately 11,000 feet underground. The Company intends to use DLE technology, a more sustainable and lower carbon-intensive method, for lithium extraction from its 'Smackover' lithium brine acreage.
The acquisition is supported by a two-tranche Placement of 40,000,000 shares at A$0.05 per share to raise $2 million. This funding will support the continued acquisition, exploration, and development of the Superbird Lithium Project and Pantera’s current projects.
- Completion of the transaction, including Pantera and Daytona Lithium shareholder approval.
- Release of lithium exploration target.
- Re-entry of an identified well within the Superbird Project’s area of interest to test brine grade, permeability, and porosity.
- DLE test of re-entry well sample by renowned DLE technology providers.
- Acquisition of existing 2D Seismic data for subsurface modelling of the Superbird Project’s area of interest.
- Continued acquisition of additional project acreage.
Commenting on the acquisition, Pantera CEO Matt Hansen: “The acquisition of Daytona Lithium marks an important milestone for the Company. For over 100 years, the Smackover Formation in Southern-USA has played an important role in America’s conventional energy economy, moreover, its well-known geology, straightforward permitting and existing infrastructure make it a prime area for Pantera to develop its lithium brine project.
With the US turning its attention to the region to produce the critical minerals needed for the EV and battery revolution through production of its lithium rich saltwater brine, the Company is walking in the valley of giants, directly competing with Exxon Mobil, Standard Lithium and Albemarle for access to the best ground in the region.
In the near-term we look forward to drilling wells and gathering samples to produce a Resource and develop our knowledge of the extensive, porous, and permeable limestone aquifer, which is host to the lithium rich brine.
Longer term, the Company has access to the technology that can extract lithium with fewer carbon emissions forming part of the industry that will strengthen supply security for the companies investing in EV and battery manufacturing facilities in North America.
The Company also warmly welcomes Mr. Tim Goldsmith to the project team, Tim was the CEO of Rincon Mining Pty Limited, one of the most advanced DLE lithium-brine companies globally and was responsible for the sale of Rincon to Rio Tinto for US$825 million. He also undertook a complete review of available DLE technology and was instrumental in directing Rincon’s Project Development Team.”