Pantera Lithium (ASX:PFE) welcomes a landmark decision by the Arkansas Oil & Gas Commission (AOGC) to implement a 2.5% royalty on lithium production, marking a pivotal step toward commercialising lithium brine projects in the state’s resource-rich Smackover Formation.
The royalty, applied only when lithium carbonate or equivalent products are sold, sets a clear and competitive fiscal benchmark for developers, providing long-sought regulatory certainty for Pantera and other stakeholders in the region.
“The AOGC’s endorsement of a structured lithium royalty is a game-changer for Pantera and all serious developers in the Smackover Basin. We now operate in a regime that offers clarity, fiscal stability, and policy support for lithium as a critical mineral,” said Pantera Executive Chairman and CEO, Barnaby Egerton-Warburton.
Key Highlights
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Regulatory Clarity: AOGC confirms a 2.5% royalty payable upon sale—not extraction—of lithium products.
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Global Competitiveness: The rate is significantly lower than many other jurisdictions, enhancing project economics.
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Pro-Development Environment: Arkansas strengthens its reputation as an investment-friendly, resource-focused state.
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Tax Incentives: Lithium producers will benefit from a six-year severance tax holiday starting July 2028.
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Project De-Risking: Pantera now has the regulatory and economic framework needed to advance feasibility, funding, and partnership discussions.
Pantera’s existing mineral lease agreements are already aligned with this framework, ensuring transparent and equitable benefit-sharing with landowners.
“This brings us one step closer to commercialisation and strengthens our negotiating position with partners, funders and downstream players,” added Egerton-Warburton.
Pantera remains committed to working closely with Arkansas regulators, community stakeholders and strategic partners as it progresses development of its flagship Smackover Project.
For more information, please visit https://panterali.com
About us:
Pantera Lithium Limited (ASX:PFE) is a forward-looking lithium exploration company focused on developing high-grade lithium brine resources in the Smackover Formation, Southwest Arkansas. The Company is dedicated to leveraging advanced subsurface modelling and strategic partnerships to establish a leading position in the U.S. lithium supply chain.
Contact details:
Jane Morgan
Investor Relations
E: [email protected]
P: +61 (0) 405 555 618