EMERALD PARK: Arizona Lithium Limited (AZL) has agreed to acquire, directly or not directly through a subsidiary, all of the issued and excellent common shares of Prairie Lithium for total consideration of roughly C$70.6 million, consisting of C$40.0 million in money and 500 million common shares of AZL at a deemed price of C$0.0612 per share.
The transaction is anticipated to shut on or about February 28, 2023, topic to various closing conditions, together with required securityholder and regulatory approvals.
The acquisition settlement contains customary representations and warranties of every party and interim operational covenants by Prairie Lithium.
The acquisition settlement additionally provides for, amongst different things, customary support and non-solicitation covenants by Prairie Lithium, topic to a “fiduciary out” for unsolicited “superior proposals” in favour of Prairie Lithium and a provision for the proper to match any superior proposals in favour of AZL.
Prairie Lithium is the proprietor of a lithium project located within the Williston Basin of Saskatchewan, Canada, and a proprietary lithium extraction course of technology that selectively removes lithium from Brine.
Prairie Lithium’s projects maintain the highest high quality inferred lithium brine useful resource in Canada found to date, with 4.1MT LCE total inferred resources at 111 mg/L Li. Located in a single of many world’s top mining pleasant jurisdictions, the projects have easy entry to key infrastructure together with electricity, pure gas, fresh water, paved highways and railroads.
The projects additionally aim to have strong environmental credentials which ought to result in much less use of freshwater, land and waste, aligning with AZL’s sustainable approach to lithium development.