LithiumBank inks direct extraction tech deal for Prairies brine projects

LithiumBank Resources (TSXV: LBNK; US-OTC: LBNKF) announced Monday an intellectual property licensing agreement for direct lithium extraction (DLE) technology owned by G2L Greenview Resources.

Effective from Sept. 8, the agreement with G2L’s parent, Go2Lithium, gives LithiumBank a full licence to use a group of continuous ion-exchange technologies in Alberta and Saskatchewan. Go2Lithium was formed earlier this year as a 50/50 joint venture between Computational Geosciences Inc. — a subsidiary of Robert Friedland-chaired Ivanhoe Electric (NYSE: IE) and Clean TeQ Water (ASX: CNQ).

This collaboration promises to enhance the efficiency of the DLE circuit at LithiumBank’s Boardwalk project in west-central Alberta, notably by slashing operational costs. Both companies expect the technology to improve lithium recovery rates and concentrate quality substantially.

G2L will ship a high-capacity pilot plant to Alberta by October to accelerate the project. With a daily processing capacity of 8,000-10,000 litres, this plant ranks as one of the largest DLE pilot plants in North America.

As a part of the agreement, LithiumBank will issue up to 14 million common shares to G2L upon meeting specific milestones to strengthen the partnership that aims to transform lithium extraction in Canada.

The company argues in its press release the agreement marks a significant stride in the lithium extraction sector, demonstrating the potent synergy between industry leaders as they employ innovative technologies to refine processes and enhance the economic viability of lithium brine projects in the region.

LithiumBank shares got a major leg up in May when it released its preliminary economic assessment for Boardwalk, outlining an after-tax net present value of US$1.7 billion at an 8% discount rate with an internal rate of return of 17.8%. It would produce 31,350 tonnes per year of battery-grade lithium hydroxide over 20 years, the largest proposed output in North America, the company said at the time.

Other DLE players in Canada are also making strides towards lithium production. On Aug 29, E3 Lithium (TSXV: ETL) rose 8.7%  after starting operations at its DLE plant in Alberta, the province’s first facility focused on testing the alternative method for drawing out lithium from brine projects.

LithiumBank shares have gained 42% over the past 12 months to close up 10.7% on Monday at $1.35 per share. It has a market capitalization of $57.2 million.