Standard Lithium Comments On Short Seller Report
November 18 2021 - 06:25PM
Standard Lithium Ltd. (“Standard Lithium” or the
“Company”) (TSXV: SLI) (NYSE: SLI) (FRA: S5L), is issuing the
following statement in response to the false and misleading report
(the “report”) from Blue Orca Capital.
The report contains numerous important
inaccuracies and misunderstandings which Standard Lithium believes
are misleading and clearly intended to benefit Blue Orca Capital,
which itself has disclosed that it stands to profit in the event
that the stock price of Standard Lithium declines. Standard Lithium
cautions investors not to make decisions based on this report and
instead strongly encourages them to consult credible and informed
sources, including Standard Lithium’s filings with the Canadian
securities regulatory authorities and the U.S. Securities and
Exchange Commission prior to making investment decisions.
Arkansas Oil and Gas Commission
DataStandard Lithium notes that the report misunderstands
the scope of the data reported to the Arkansas Oil and Gas
Commission (AOGC). The Demonstration Plant operated by Standard
Lithium, under normal conditions, continuously produces lithium
chloride solution, which is then mixed back into the waste brine
stream and reinjected back into the geological formation via
Lanxess’ existing brine disposal system. These large volumes of
lithium chloride that were produced are not included in the data
reported to the AOGC. To be clear, the only data reported to the
AOGC, in compliance with the requirements of the AOGC, were those
volumes of lithium chloride solution that were temporarily stored
on Standard Lithium’s site and these have no correlation with
actual lithium recovery rates observed in the plant. A portion of
this lithium chloride was sent off-site for conversion to lithium
carbonate on four separate occasions when conversion work was
scheduled. The reported data forms only a small portion of the
total lithium chloride recovered in the process. Blue Orca
Capital’s interpretation of lithium recovery rates is incorrect and
underestimates lithium extraction efficiencies. Similarly, the
report's claims that recovery is reducing over time also
misinterprets the AOGC data. Standard Lithium has only stored
lithium chloride product on site when required and the periods when
it is stored do not correlate with actual lithium recovery rates
observed in the plant at the time.
Points of clarity:
- The lithium
chloride solution reported under the category “The output of
lithium carbonate, lithium chloride, and lithium hydroxide” on the
AOGC website only represents that portion of lithium chloride
solution which was temporarily stored on site and not the much
larger volume that is continuously reinjected back into the brine
formation;
- The conclusions
of the report prepared by Blue Orca Capital are incorrect and based
on misinterpretation of the information and excludes the much large
volumes of lithium chloride solution that was produced at the
Demonstration Plant; and,
- Blue Orca
Capital has opportunistically issued this report with partial and
incomplete information and without consultation or clarification by
the Company.
Demonstration PlantThe report
also fundamentally misunderstands the necessity and purpose of the
Demonstration Plant. The Demonstration Plant was designed to
continuously process an input tail brine flow of 50 gallons per
minute (gpm; or 11.4 m3/hr) which is the equivalent of 100–150
tonnes per annum of lithium carbonate. One of the objectives of the
Demonstration Plant to date has been to produce sufficient
quantities of solid lithium carbonate product off-site, to validate
that battery quality materials can be produced. It has never been
the intent to store on-site all of the lithium chloride produced
and then convert all of that to lithium carbonate product. The
principal purpose of the plant is to optimize the process to allow
for design and scale-up of a commercial plant in preparation for a
feasibility study (in accordance with National Instrument
43-101).
The Company is confident in its lithium
extraction technology and Demonstration Plant and will maintain its
focus on executing its strategic plans and progressing towards
definitive feasibility and commercialisation at the Lanxess
facility. The Company will not be providing further comment on the
report at this time.
About Standard Lithium Ltd.
Standard Lithium is an innovative technology and
lithium development company. The Company's flagship project is
located in southern Arkansas, where it is engaged in the testing
and proving of the commercial viability of lithium extraction from
over 150,000 acres of permitted brine operations. The Company has
commissioned its first-of-a-kind industrial-scale direct lithium
extraction demonstration plant at Lanxess's south plant facility in
southern Arkansas. The demonstration plant utilizes the Company's
proprietary LiSTR technology to selectively extract lithium from
Lanxess's tail brine. The demonstration plant is being used for
proof-of-concept and commercial feasibility studies. The scalable,
environmentally friendly process eliminates the use of evaporation
ponds, reduces processing time from months to hours and greatly
increases the effective recovery of lithium. The Company is also
pursuing the resource development of over 30,000 acres of separate
brine leases located in south west Arkansas and approximately
45,000 acres of mineral leases located in the Mojave Desert in San
Bernardino county, California.
Standard Lithium is jointly listed on the TSX
Venture and the NYSE American Exchanges under the trading symbol
“SLI”; and on the Frankfurt Stock Exchange under the symbol “S5L”.
Please visit the Company’s website
at www.standardlithium.com.
On behalf of the Board of 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, reserves or resources, accuracy of
the PEA, including NPV, IRR, capital and operating costs, life of
mine production, progression of the project, including to a
pre-feasibility study, 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.
For further information, contact Anthony Alvaro at (604) 240 4793
Contact: info@standardlithium.com
Twitter: @standardlithium
LinkedIn: https://www.linkedin.com/company/standard-lithium/
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