
CANADA — Arizona Lithium Limited (ASX: AZL) has successfully raised $11 million through the sale of non-core assets at its Prairie Lithium Project in Saskatchewan.
This strategic move allows the company to bolster its finances without diluting shareholder value.
The deal involves the sale of approximately 40,000 acres of Crown Mineral Title and 11,600 net acres of Freehold Mineral Title to Homestead Energy Inc., a Saskatchewan-based oil and gas company.
The transaction was executed through three separate agreements:
- A conveyance agreement for the mineral titles
- A licence agreement granting Homestead Energy a royalty-free, perpetual licence to the data
- An escrow agreement to manage the transfer of funds and documents
This sale represents only a small portion of Arizona Lithium’s extensive 390,000 net acre holdings at the Prairie Lithium Project.
By divesting non-core assets, the company can now focus on advancing its primary project areas towards commercial production, targeted for 2025.
Paul Lloyd, Managing Director of Arizona Lithium, emphasised the strategic importance of the deal: “The sale of non-core acreage and data is an effective and efficient capital management tool as it provides $11 million to the Company without diluting shareholders.”
The funds raised from this transaction will be used to accelerate development activities at the Prairie Lithium Project.
The company plans to concentrate on areas that align with its goal of becoming a significant lithium producer in North America.
This financial boost comes on the heels of Arizona Lithium’s recent discovery of a new lithium-enriched formation at the Prairie Project.
The company continues to demonstrate its commitment to exploring and developing its lithium assets in North America.
As the global demand for lithium continues to rise, Arizona Lithium’s strategic moves position it to capitalise on the growing market for this critical mineral used in electric vehicle batteries and renewable energy storage systems.