Arizona Lithium Unveils North America’s First Commercial Lithium Brine Facility Plan
Arizona Lithium advances its Prairie Project with a pioneering commercial development plan for lithium brine extraction, regulatory approvals, and a $1.3 million capital raise to fund initial production.
- Commercial development plan released for Prairie Project’s lithium brine facility
- Approval granted for brine production and disposal by Saskatchewan Water Security Agency
- Plan of Operations for Big Sandy Project rescinded for stakeholder collaboration
- Successful $1.3 million capital raise and Share Purchase Plan initiated
- Focus on deploying Koch’s commercial-scale Direct Lithium Extraction technology
Pioneering Lithium Brine Production in North America
Arizona Lithium Limited (ASX: AZL) has taken a significant step forward in lithium development with the release of its Commercial Development Plan for the Prairie Lithium Project in Saskatchewan, Canada. This plan outlines the phased approach to establishing North America’s first lithium brine production facility, leveraging Koch’s commercial-scale Direct Lithium Extraction (DLE) technology. The initial phase targets production of 150 tonnes per annum of lithium carbonate equivalent, positioning Arizona Lithium at the forefront of a rapidly evolving lithium extraction landscape.
The Prairie Project’s phased rollout is designed to methodically de-risk the operation, starting with a commercial-scale DLE unit at Pad #1. This unit will process approximately 1,000 cubic meters of brine daily, enabling continuous 24/7 operation to validate the technology under real-world conditions. Success in Phase 1 will pave the way for rapid modular expansion in Phase 2 and replication across additional pads in Phase 3, underscoring the company’s scalable approach.
Regulatory Milestones and Stakeholder Engagement
Crucially, Arizona Lithium secured approval from the Saskatchewan Water Security Agency to produce and dispose of brine for Phase 1, a vital regulatory hurdle for the project’s advancement. Consent from neighboring oil and gas operators further smooths the path for brine disposal, reflecting collaborative engagement within the established energy region.
Meanwhile, the company has rescinded its previously approved Plan of Operations for the Big Sandy Lithium Project in Arizona. This move follows consultations with key stakeholders, including the Navajo Transitional Energy Company (NTEC), a major shareholder. Arizona Lithium aims to develop Big Sandy with a revised plan that better aligns with stakeholder interests, signaling a strategic pivot that may enhance project viability and community relations.
Capital Raising to Fuel Engineering and Development
To support detailed engineering design for the Prairie Project’s first production facility, Arizona Lithium successfully raised $1.3 million through an at-the-market equity placement. Additionally, the company has launched a Share Purchase Plan offering shareholders the opportunity to invest further, with a target raise of $2 million. The participation of directors and major shareholders in the plan demonstrates confidence in the project’s prospects.
Financial disclosures reveal ongoing exploration and evaluation expenditures, alongside operating cash outflows. With cash reserves of approximately $1.25 million at quarter-end and an estimated funding runway of just half a quarter, the company’s near-term financial health hinges on the success of its capital raising initiatives.
Positioning for a Recovering Lithium Market
Managing Director Paul Lloyd emphasized the company’s commitment to de-risking the Prairie Project while monitoring lithium market dynamics. He highlighted the strategic importance of North American lithium brine projects within established oil and gas regions and Arizona Lithium’s potential to lead this emerging segment through innovative DLE technology. The company’s approach aims to deliver high-quality lithium products at low operating costs, anticipating a market recovery that will unlock full project funding and development.
While the Proof of Concept Plan remains preliminary and contingent on securing approximately AUD35 million in future funding, Arizona Lithium’s methodical progress and regulatory approvals mark meaningful milestones. The company’s focus on scalable technology deployment and stakeholder collaboration positions it well to capitalize on evolving market opportunities.
Bottom Line?
Arizona Lithium’s Prairie Project is poised at a critical juncture, with regulatory green lights and fresh capital setting the stage for commercial lithium brine production in North America.
Questions in the middle?
- Will Arizona Lithium secure the full AUD35 million funding needed to advance beyond Phase 1?
- How will the revised Big Sandy Project plan impact timelines and stakeholder relations?
- Can Koch’s DLE technology deliver on its promise of low-cost, high-quality lithium at scale?