Rain City ends Avonlea option, pursues tech licence

Executive Summary

• Rain City Resources terminated its $1.2 M option agreement with Avonlea Environmental Technologies Corp. and is pursuing a licensing arrangement to access Avonlea’s ACCELi cavitation technology.
• The new licensing model is intended to accelerate commercialisation of Rain’s direct lithium extraction (DLE) projects, particularly in South America, while allowing Avonlea to focus on its pilot plant in Pennsylvania.
• Management views the shift as a positive step and will provide further details as negotiations progress.

Key Details

• Option Agreement Termination: Rain City Resources elected not to make the second payment of $1.2 million (U.S.) under the option agreement dated June 12, 2024 (as amended), thereby terminating the agreement with Avonlea.
• Licensing Negotiations: Rain is in active discussions with Avonlea to establish a licensing arrangement granting access to ACCELi cavitation technology.
• Strategic Rationale: The licensing model is expected to fast‑track commercial opportunities for Rain’s DLE projects in South America and allow Avonlea to continue development of its pilot plant in Pennsylvania.
• Management Comment: CEO Benjamin Hill stated the termination was made after consultation with financial advisers and that the licensing approach represents a positive step forward for both companies.
• Future Updates: Additional announcements regarding the terms and timeline of the licensing arrangement will be provided in due course.

Notable Quotes

“The termination of the option agreement was taken following discussions with our financial advisers and Avonlea. By seeking a licensing arrangement with Avonlea, Rain will seek to fast‑track opportunities in South America leaving Avonlea to build on the success of the pilot plant in Pennsylvania. We see this as a positive step forward for the company.” – Benjamin Hill, CEO, Rain City Resources Inc.