Arizona Lithium (AZL) has obtained conditional approval for as much as $21.6m in transferable royalty credit beneath the OPGII Programme for Pad #1 at its Prairie Lithium challenge in Saskatchewan.
OGPII credit are earned on eligible expenditures and might solely be claimed as soon as the challenge turns into commercially operational.
The credit are utilized in opposition to crown royalties payable on the manufacturing of lithium at a price of 20% within the first calendar yr of operations, 30% within the second calendar yr and 50% within the third calendar yr, successfully lowering the corporate’s legal responsibility for crown royalties.
Provided that the credit are transferable, AZL can generate early money move by promoting them to different corporations that pay royalties in Saskatchewan.
Along with the Prairie Lithium Challenge, the corporate is growing the Large Sandy Lithium Challenge in North America.
The AZL Prairie Lithium Challenge is situated within the Williston Basin of Saskatchewan, Canada, and holds a useful resource of 6.3 million tonnes (mt) of lithium carbonate equal (LCE), together with 4.5mt LCE indicated and 1.8mt LCE inferred.
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The corporate famous that the challenge advantages from entry to important infrastructure, together with electrical energy, highways, railroads, pure fuel, in addition to recent water.
AZL managing director Paul Lloyd stated: “I’m more than happy to share that Pad #1 on the Prairie Challenge has been conditionally accredited for as much as $21.6m in funding incentives. Saskatchewan is a top-ranked jurisdiction and is dedicated to accountable financial growth of its sources.
“This conditional approval beneath the OGPII Program is a testomony to how the province works with business to search out options to financial progress, and we’re grateful to work with the governing our bodies and function our challenge there.
“This is among the many growth funding instruments we have now entry too, which is a non-dilutive profit to shareholders.”