Arcadium shareholders approve sale to Rio Tinto
Shares of Arcadium Lithium rose about 7% in extended trading after the company said that about 98% of its shareholders had voted in favor of the sale.
Standard Lithium (TSXV: SLI) has signed a letter of intent (LOI) with Koch Minerals & Trading LLC for the purchase of lithium chemical offtake and the procurement of key raw materials.
The principal aim of the LOI is to develop a market-based pricing mechanism for KM&T to procure lithium hydroxide, and other lithium chemicals, produced by Standard Lithium at its South West Arkansas project.
KM&T is also expected to assist the company with the effective procurement of key raw materials and chemical reagents by leveraging Koch’s expertise, networks and global scale, Standard Lithium said.
“Koch is a significant investor in Standard Lithium, and we are excited to expand on this strategic relationship. Developing a market-based pricing offtake structure with KM&T at our South West Arkansas project will allow the company to benefit from the projected high prices for lithium chemicals in the coming decade and beyond,” said CEO Robert Mintak said in a press release.
“Additionally, the ability to leverage KM&T’s substantial purchasing and commodity trading capabilities to optimize the price, quality and quantity of reagents required to operate the plants in the future, which is meaningful both for financing these projects as well as their successful operation,” he added.
Standard Lithium the process of testing the commercial viability of its proprietary lithium extraction technology from over 150,000 acres of permitted brine operations at its flagship project in southern Arkansas.
This is done through its first-of-a-kind, industrial-scale direct lithium extraction demonstration plant commissioned at a brine processing plant held by chemical company Lanxess AG.
Standard Lithium is also pursuing the resource development of over 30,000 acres of separate brine leases at the South West Arkansas lithium project.
The lithium chemical off-take agreement with KM&T does not affect any offtake arrangements existing or contemplated with Lanxess, the company said.
Shares in Standard Lithium surged 8% by 1:40 p.m. EDT, giving the lithium project development company a market capitalization of C$1.3 billion ($1bn).
