Standard Lithium Signs MoU with Global Specialty Chemical Company LANXESS for the Development of Commercially Viable Extraction of Lithium from Operational Smackover Brine Resource
VANCOUVER, British Columbia, May 09, 2018 (GLOBE NEWSWIRE) -- Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLL) (OTCQX:STLHF) (FRA:S5L) is pleased to announce the signing of a Memorandum of Understanding (MoU) with global specialty chemicals company LANXESS Corporation (“LANXESS”) and its US affiliate Great Lakes Chemical Corporation (“GLCC”), with the purpose of testing and proving the commercial viability of extraction of lithium from brine (“tail brine”) that is produced as part of Lanxess’s bromine extraction business at its three Southern Arkansas facilities.
LANXESS’ land operations in Southern Arkansas encompass more than 150,000 acres, 10,000 brine leases and surface agreements and 250 miles of pipelines. LANXESS extracts the brine from their wells located throughout the area, and the brine is transported to the three Arkansas plants through a network of pipelines. The three bromine extraction plants currently employ approximately 500 people and process and reinject several hundred thousand barrels of brine per day.
Standard Lithium has developed proprietary processes related to the extraction of high purity lithium directly from brines, including tail brine. Additionally, the Company has secured the rights to conduct exploration, production and lithium extraction activities on roughly 30,000 acres of brine leases located elsewhere in the Smackover Formation in Southwest Arkansas.
The MoU sets out the basis on which the parties have agreed to cooperate in a phased process towards developing commercial opportunities related to the production, marketing and sale of battery grade lithium products extracted from tail brine and brine produced from the Smackover Formation. The MoU forms the basis of what will become a definitive agreement and is binding until the execution of a more comprehensive agreement that the parties may execute on the completion of further development phases. Standard Lithium has paid an initial US$3,000,000 reservation fee to LANXESS to secure access to the tail brine, with additional fees and obligations in the future subject to certain conditions.
Robert Mintak CEO of Standard Lithium commented “We are delighted to be entering into a cooperation with Lanxess, a highly-respected world leader in the specialty chemical sector.” Mr. Mintak added, “given the scale of the existing infrastructure and potential resource, the mitigation of project execution risks and acceleration of the Smackover project development timeline, this MoU represents an important step for Standard Lithium.”
Dr. Andy Robinson, President and COO of the Company stated “This project provides the perfect opportunity to test modern brine processing technology on an existing lithium brine stream. We hope to move as quickly as possible towards deploying our Pilot Plant.”
About Standard Lithium
Standard’s value creation strategy encompasses acquiring a diverse and highly prospective portfolio of large-scale domestic brine resources, led by an innovative and results-oriented management team with a strong focus on technical skills and modern brine processing technologies. The Company is currently engaged in the exploration and resource development of the California Lithium Projects located in the Mojave region of San Bernardino County, California; the project area has significant infrastructure in-place, with easy road and rail access, abundant electricity and water sources, and is already permitted for extensive brine extraction and processing activities. The Company is also rapidly conducting resource evaluation on up to 30,000 acres of brine leases located in the Smackover Formation in Southwestern Arkansas.
Standard Lithium is listed on the TSX Venture Exchange under the trading symbol “SLL”; quoted on the OTCQX under the symbol “STLHF”; and on the Frankfurt Stock Exchange under the symbol “S5L”. Please visit the Company’s website at www.standardlithium.com.
For further information, contact Anthony Alvaro at (604) 240 4793
On behalf of the Board,
Standard Lithium Ltd.
Robert Mintak, CEO & Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate,” “believe,” “estimate,” “expect,” “target,” “plan,” “forecast,” “may,” “schedule,” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, the development of lithium extraction technologies and processes, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for lithium and its derivatives, changes in exploration costs and government regulation in Canada and the United States, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations. Neither the Company, nor Lanxess, nor GLCC makes any representations as to the value of brine mineral lease rights which are the subject of the MOU, the availability of any particular resource or minerals, or the merits of any proposed work to be undertaken.