Perth, Australia – 7 October 2024 | Arizona Lithium Limited (ASX: AZL, AZLO, OTC: AZLAF) ("Arizona Lithium" or "the Company") is pleased to announce the successful completion of a non-dilutive cash raise of A$11 million through the sale of non-core mineral title and data at its Prairie Lithium Project in Saskatchewan, Canada. The sale to Homestead Energy Inc. enables the Company to focus on the development of its core lithium assets while preserving shareholder value.
Highlights:
-
A$11 Million Cash Proceeds: Arizona Lithium has secured A$11 million from the sale of approximately 40,000 acres of Crown Mineral Title and 11,600 net acres of Freehold Mineral Title to Homestead Energy Inc.
-
Non-Dilutive Funding: The transaction allows Arizona Lithium to raise funds without issuing new shares.
-
Focus on Core Development: The divested acreage represents a small portion of Arizona Lithium’s 390,000 net acres at the Prairie Lithium Project, allowing the Company to concentrate on advancing its core project areas towards commercial production in 2025.
-
Strategic Partner: Homestead Energy Inc., a Saskatchewan-based oil and gas company, has taken on the purchased mineral title and data, assuming all associated environmental and end-of-life liabilities.
Paul Lloyd, Managing Director of Arizona Lithium, commented: “The sale of non-core acreage and data is an effective and efficient capital management tool as it provides $11 million to the Company without diluting shareholders. The land component of the transaction is only a small part of our existing 390,000 net acres we held prior to the transaction. Proceeds from the transaction will be used to advance the development of our core acreage and undertake more work towards the stated goal of commercial production at the Prairie Lithium Project in 2025."
Transaction Details:
-
Three Agreements Executed: The sale was completed through three separate agreements:
-
A conveyance agreement for the mineral titles.
-
A licence agreement granting Homestead Energy a royalty-free, perpetual licence to the data.
-
An escrow agreement to manage the transfer of funds and documents.
-
-
Proceeds Allocation: Funds from the sale will be used to accelerate development activities at the Prairie Lithium Project, focusing on areas that align with the Company’s goals to become a significant lithium producer.
Paul Lloyd
Managing Director
paul@arizonalithium.com
Jane Morgan
Investor and Media Relations
jm@janemorganmanagement.com.au
About us:
About Arizona Lithium Limited:
Arizona Lithium Limited is an Australia-based exploration company. The Company is engaged in the development of its Big Sandy Lithium Project in Arizona and Lordsburg Lithium Project in New Mexico. The Big Sandy lithium project is located on interstate I93 between Phoenix and Las Vegas, comprising 331 Bureau of Land Management (BLM) claims in Arizona, covering approximately 25 square kilometres. The Lordsburg Lithium Project comprises about 291 BLM claims covering approximately 25 square kilometres and is located in the southwest corner of the state of New Mexico and is accessed along the I10 Interstate between Tucson and La Cruces close to the New Mexico, Arizona border. The Lordsburg Project sits within the playa lake system at the northernmost end of the Animas Valley, southwest New Mexico. The Prairie Lithium project is located in southeast Saskatchewan and comprises over 350,000 acres of subsurface permits.
Contact details:
Jane Morgan
Jane Morgan Management
Investor and Media Relations
jm@janemorganmanagement.com.au