LithiumBank signs DLE deal for Boardwalk 2027

Executive Summary

• LithiumBank Resources Corp. signed a Development Agreement (DA) with a leading energy services and technology supplier (LESTS) to advance its Boardwalk lithium brine project in northwest Alberta to commercial production, with execution targeted for 2027.
• The agreement includes binding Direct Lithium Extraction (DLE) licensing terms, commissioning of a feasibility study, front-end engineering design, and engineering procurement and construction activities.
• The project envisions initial production capacity of up to 10,000 tonnes per annum (tpa) of lithium carbonate (LCE) using two modular DLE units, with a scalable approach allowing for 5,000 tpa increments.

Key Details

• Agreement Structure: The DA involves collaboration to develop the Boardwalk asset using licensed modular DLE technology. It includes a feasibility study, front-end engineering design, and engineering procurement and construction.
• Production Capacity: The feasibility study envisions two initial DLE modules capable of up to 10,000 tpa lithium carbonate (LCE). The modular approach allows scaling production by 5,000 tpa LCE increments.
• Government Funding: The Alberta government (Emissions Reduction Alberta) will provide funding covering up to 50% of specific milestones, up to a total of $3.9 million. Funded activities include:
  • Re-entering and deepening a second past-producing, suspended oil and gas well of the Leduc formation.
  • Conducting concentration and conversion testing of 114,320 litres (30,200 gallons) of raw brine to battery-grade lithium carbonate.
  • Completing a feasibility study.
• Licensing Terms: The DA includes licensing of LESTS's proven technology for the full processing flow sheet (brine pretreatment to battery-grade product). The license fee is payable from production proceeds via a gross overriding royalty, which LithiumBank deems favorable.
• Exclusivity: LithiumBank agrees to collaborate exclusively with LESTS during the DA term until a definitive agreement is executed or negotiations are abandoned by mutual consent.
• Project Timeline:
  • Feasibility study completion anticipated in 2026.
  • Project execution targeted for 2027.
• Resource Estimate (NI 43-101):
  • Indicated Resources: 5.2 million tonnes LCE at 81.6 mg/L lithium within 11.96 cubic kilometers of brine.
  • Inferred Resources: 2.8 million tonnes LCE at 79 mg/L lithium within 6.56 cubic kilometers of brine.
  • Effective Date: February 20, 2025.
• Key Milestones: DLE testing, feasibility study/DFS/subsurface modeling, detailed engineering and AACE Class 2 estimate, procurement, phased commercial production plant construction, and commissioning/start-up.

Notable Quotes

• "We are pleased to have reached this juncture in Boardwalk's development, where we have a distinct path toward commercial production... We anticipate a feasibility study to be completed in 2026, which will significantly reduce our development timeline and costs compared to alternative strategies." — Rob Shewchuk, CEO and Director, LithiumBank Resources Corp.
• "Our licence with LESTS's comprehensive proven DLE solution and modular approach is projected to scale production by 5,000 tpa LCE increments with a capital intensity that we believe is more advantageous than comparable brine projects in North America." — Rob Shewchuk, CEO and Director, LithiumBank Resources Corp.