Pilot plant

The lithium extraction plan under construction near El Dorado.

VANCOUVER, British Columbia -- Standard Lithium Ltd. has announced that it has entered into a loan and guarantee agreement with Lanxess Corporation.

The loan has been fully advanced to Standard Lithium as $3,750,000, based on an agreed Canadian-U.S. exchange rate, and will be used in the ongoing development of a demonstration plant near El Dorado, Arkansas for the demonstration of Standard Lithium’s proprietary process for the extraction of lithium from brine solutions.

The principal amount of the loan will be convertible at the option of the lender at a rate such that for each 80 cents (Canadian) of principal converted, the lender will receive one common share of Standard Lithium and one-half of a warrant to purchase an additional common share with an exercise price of $1.20 (Canadia) per common share and a term of three years. Assuming full conversion of the loan principal, the lender would receive 6,251,250 common shares and 3,125,625 warrants. All securities issued upon conversion of the loan will be subject to four-month-and-one-day statutory hold period from the date the loan was advanced.

The outstanding principal amount of the Loan will bear interest at an annual rate of 3 percent, subject to adjustments. In the event that Standard Lithium has a positive consolidated operating cash flow, as shown on its financial statements, Standard Lithium will pay a fee to the lender of 4.5 percent per annum on the average daily outstanding principal amount of the loan from the issuance date to the date that the consolidated operating cash flow of Standard Lithium is positive.

CLICK HERE to read more Union County news on our website. Tell your friends and family that thanks to our advertisers, they can read news for free on our website.

Email us at news@magnoliareporter.com

CLICK HERE to find us on Facebook.

CLICK HERE to follow us on Twitter @Magnolia_Report


Click an emoticon to express your reaction to this article.


Recommended for you