Standard Lithium Ltd. (“
Standard
Lithium” or the “
Company”) (TSXV: SLI)
(NYSE: SLI) (FRA: S5L), an innovative technology and lithium
project development company, today announced that Koch Strategic
Platforms (“
KSP”), a subsidiary of Koch
Investments Group, will make a US$100 million investment in
Standard Lithium through a direct private placement to support the
Company’s strategic development goals.
Key Points:
- US$100 million direct private
placement (the “Direct Investment”);
- Standard Lithium to issue
13,480,083 common shares (“Common Shares”) of the
Company at a price of CDN$9.43 (US$7.42) per Common Share;
- Direct Investment follows extensive
due diligence into Standard Lithium’s LiSTR DLE technology,
Demonstration Plant and project development objectives; and,
- Parties to explore opportunities to
work with several Koch Industries subsidiaries in key areas of
alignment with Standard Lithium’s project development needs (the
“Strategic Opportunities”).
In addition to the new capital, the Company,
along with several Koch Industries subsidiaries, are exploring
Strategic Opportunities to work collaboratively in several key
areas. These potentially include working with Koch Engineered
Solutions (“KES”) which provides key process
equipment, engineering, procurement, and construction services; as
well as Koch Minerals & Trading (“KM&T”)
which is involved in the trading of many of the materials that will
be required by the Company in the future, as well as the lithium
products it intends to produce.
The net proceeds of the US$100 million Direct
Investment will be used by the Company to pursue the following
objectives:
- Continue to rapidly advance the
first commercial project proposed for the Lanxess facility;
- Accelerate and expand the Company’s
development of the South West Arkansas Lithium Project;
- Continue to develop and
commercialise modern lithium extraction and processing technologies
and work collaboratively with KES businesses; and,
- Allow for strategic project
expansion.
“We’re entering an important phase for Standard
Lithium and we’re thrilled to be starting it with a globally
recognized industrial leader like Koch Strategic Platforms as a
partner” said Robert Mintak, CEO of Standard Lithium. “KSP has an
impressive track record of investing in disruptive technologies and
their backing is an important endorsement of the Company’s core
technology, development plans and of our intent to make the Gulf
Region a leading supplier of lithium resources.”
“KSP is focusing on investing in companies with
strong tailwinds that are disrupting the market as we know it. We
are excited to invest in Standard Lithium as they pave a path
forward towards lithium production here in the U.S. This is an
exciting time for energy transformation and we believe KSP’s
investment in Standard Lithium can help accelerate the production
of lithium resources right here at home.” said David Park,
president of Koch Strategic Platforms.
Strategic Alignment with Koch
BusinessesThe Company expects the Direct Investment by KSP
to provide for mutually beneficial alignment with several Koch
Industries businesses. For example, several businesses within the
KES and KM&T platforms could assist in the following ways:
- Providing key industrial
technologies and process solutions for commercialisation from Koch
Separation Solutions;
- Engineering and development
oversight from Koch Project Solutions;
- Engineering, procurement and other
construction services from the Optimized Process Designs (OPD)
group; and,
- Raw material supply agreements and
assistance with future lithium product off-take agreements from the
KM&T group.
Terms of the Direct
InvestmentUnder the terms of the Direct Investment, KSP
will subscribe for 13,480,083 common shares of Standard Lithium at
a price of CDN$9.43 (US$7.42) per share for gross proceeds to
Standard Lithium of CDN$127,070,000 (US$100,000,000). All common
shares issued to KSP will be subject to statutory restrictions on
resale prescribed by applicable Canadian and United States
securities laws. Completion of the Direct Investment remains
subject to the approval of the TSX Venture Exchange, as well as
satisfaction of customary closing conditions.
MaxEn Capital Advisors, Ltd. acted as sole
financial advisor to Standard Lithium on the transaction, led by
Senior Managing Director, Howard Margulis, and will be entitled to
receive a cash fee and share purchase warrants of Standard Lithium
in consideration for services provided.
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, referred to as the
Southwest Arkansas Lithium Project, 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
About Koch Strategic
Platforms
With offices in Atlanta and Wichita, KSP desires
to be the preferred investment partner of growth focused, strategic
companies who are innovating in industries with disruptive
potential. Created in 2020, the KSP team pursues public and private
investments with companies where long-term mutual benefit can be
realized. https://www.kochind.com/
For further information, contact Anthony Alvaro at (604) 240
4793
Contact: info@standardlithium.comTwitter:
@standardlithiumLinkedIn:
https://www.linkedin.com/company/standard-lithium/
Koch IndustriesChristin Fernandez, Director of
Communications202-879-8546
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 plans and objectives of the Company, including,
without limitation, the pursuit and/or realization of any Strategic
Opportunities, satisfaction of all conditions to completion of, and
closing of, the Direct Investment, anticipated benefits of the
Direct Investment and Strategic Opportunities being realized,
future prices of commodities, accuracy of mineral or resource
exploration activity, reserves or resources, accuracy of
preliminary economic assessments, including net present value,
internal rate of return, 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.
Christin.Fernandez@kochps.com
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