Prairie Lithium drilled the first targeted lithium well in Saskatchewan near Torquay in late September. This is Panther Drilling Rig 2 on the day it cased the well, Sept. 27. Photo by Brian Zinchuk

 

EMERALD PARK, Saskatchewan – Prairie Lithium Corporation announced the completion of a $7.5 million private placement (of common shares and convertible debentures) led by PFM Capital Inc. That’s nearly double what was originally sought. The offering was upsized from $4 million as a result of excess demand, according to a company release on Oct. 14.

Emerald Park-based Prairie Lithium is seeking to establish itself as a “dual stream developer of lithium resource and lithium extraction technology.”

In particular, they are developing technology to extract lithium from the brines that make up oilfield produced water. Additionally, the company drilled the first targeted lithium well in Saskatchewan history near Torquay in late September, seeking brines that are even higher in lithium content.

“Prairie Lithium’s project is uniquely situated in the Williston Basin, in Saskatchewan, Canada, which has historically been known for oil and gas and potash production. The development of these previous resource industries in the area allows the company to utilize the existing skills and infrastructure in the application of its rapid lithium extraction technology,” the release said.

“The price of battery grade lithium chemicals is soaring in 2021, surpassing all time highs previously set in 2018. Without the rapid development of new lithium resources, supply shortages of lithium are anticipated by 2025 as a result of increased battery production. The global demand for lithium could increase by five times by 2030, as a result of auto manufacturers’ committing to offer additional electric models.”

Prairie Lithium said its North American-based project is well positioned, as Canada and the United States look to execute their critical mineral strategies that would see North America take a larger stake in the global battery material supply chain.

“PFM is excited to partner with Prairie Lithium which has established itself as a Western Canadian leader in this burgeoning industry,” said Jason Moser, partner and senior director of investments at Regina-based PFM Capital Inc. “We believe the company can capitalize on strong macro fundamentals and advance the industry in Saskatchewan and beyond.”

Prairie Lithium will use the proceeds of the private placement to fund resource exploration and development opportunities, develop the company’s lithium extraction and refining process, and for general corporate and working capital purposes.

Stikeman Elliott LLP acted as counsel to Prairie Lithium in respect of the private placement.

Watch for in-depth coverage on Prairie Lithium in the coming weeks on PipelineOnline.ca. We were out at the first lithium well drilled in Saskatchewan in late September.

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