LithiumBank Signs Non-Binding Letter of Intent to Acquire Fundamental Infrastructure for the Boardwalk Lithium Brine Project

LithiumBank Resources Corp. has signed a non-binding Letter of Intent (LOI) to acquire key infrastructure assets, including wells, pipelines, surface leases, and easements, associated with its 100%-owned Boardwalk lithium brine project in Alberta. The transaction grants a two-year option to purchase at an exercise price of CAD 2.5 M, with an initial payment of CAD 1.0 M upon executing the Option Agreement. This initial payment is structured as 50% cash and 50% shares at a discount to market.

The company states that the strategic rationale is to materially reduce capital expenditures and shorten the timeline to production by re-entering past-producing wells rather than drilling new ones from surface. LithiumBank highlights that re-entry requires only approximately 300 m of drilling, compared to 2,600–2,800 m for a new well to the Leduc formation. The LOI is subject to due diligence, regulatory approvals from the Alberta Energy Regulator and the TSX Venture Exchange, and the execution of a definitive Option Agreement.

LithiumBank Resources Corp. (LBNK) has entered into a non-binding letter of intent (LOI) to secure brownfield infrastructure for its Boardwalk project, a move that could help lower capital intensity. The potential cost associated with the agreement is CAD 3.5 million, a figure that remains modest relative to the project’s overall capital expenditure requirements. The 2024 Preliminary Economic Assessment (PEA) implied a multi-billion-dollar build, and the current feasibility study is evaluating a modular 10,000 tonnes per annum scenario.

The company had previously signaled its intention to leverage existing oil-and-gas infrastructure, and the LOI formalizes this strategy by addressing surface rights and pipeline infrastructure necessary to fully utilize existing wellbores. This follows the acquisition of well licenses 10-6 and 1-12, with the company actively working to unlock Environmental Remediation Assistance (ERA) funding for re-entry and direct lithium extraction (DLE) testing. No firm acquisition of the assets has occurred yet.

Financially, LithiumBank reported a net loss of approximately $2.85 million for the six months ended March 31, 2026. The company held cash of $3.19 million with a negative operating cash flow of $2.40 million, representing a monthly burn rate of approximately $400,000. The LOI requires a $500,000 cash outlay upon option execution, which is manageable but not immaterial given the current cash runway. The impact of the agreement is considered material only if and when it becomes a definitive agreement; until then, it represents a low-cost option on future savings.

LithiumBank Resources Corp. is a pre-revenue lithium brine developer focused on Western Canada. Its flagship Boardwalk Project in Alberta hosts 5.2 Mt LCE in Measured & Indicated resources at 81.6 mg/L Li, making it the highest-grade lithium brine project in the province. The Park Place project adds significant inferred resources, giving the company a total of ~23 Mt LCE.

The development plan centers on a modular Direct Lithium Extraction (DLE) approach using SLB’s proprietary technology. Initial production is targeted at 10,000 tpa LCE via two DLE units, with future scalability in 5,000 tpa increments. A Feasibility Study and Front-End Engineering Design (FEED) are underway, supported by a $3.9 M non-dilutive grant from Emissions Reduction Alberta. Pilot testing has demonstrated up to 95% lithium recovery and >99% impurity rejection.

The company benefits from brownfield infrastructure, including wells, pipelines, roads, and power, in a tier-one mining jurisdiction with no overlapping pore-space issues.