Standard Lithium

Standard Lithium Closes Impressive C$12.1M Financing; Working Towards Completion Of PFS In Q2

Building demonstration plant at Lanxess Project site 

After Standard Lithium (TSXV: SLL) (OTCQX: STLHF) (FRA: S5L) managed to arrange a C$5M (US$3.75M) convertible loan and guarantee agreement with Lanxess on October 30, 2019, management hasn’t been sitting on its hands. On February 26, 2020, the company announced that an ongoing capital raise, intended to raise C$6M, was closed at no less then C$12.1M. I found this to be very impressive as sentiment for lithium developers has recovered slightly on the back of Tesla’s unexpected positive results and following runup of the share price of the car and battery manufacturer, but is still neutral to negative. The proceedings will be used for the ongoing development of the mentioned demonstration plant, which is capital intensive.

All presented tables are my own material, unless stated otherwise.

All pictures are company material, unless stated otherwise.

Standard Lithium Arranges C$5M Convertible Loan Financing

Building demonstration plant at Lanxess Project site

It seems more and more likely that Standard Lithium (TSXV: SLL) (OTCQX: STLHF) (FRA: S5L) is displaying a serious commitment of giant JV partner Lanxess these days, with construction of the demonstration plant advancing rapidly along the way. Standard managed to arrange a C$5M (US$3.75M) convertible loan and guarantee agreement with Lanxess on October 30, 2019, and has already been paid out to Standard. The proceedings will be used for the ongoing development of the mentioned demonstration plant, which is capital intensive.

All presented tables are my own material, unless stated otherwise.

Standard Lithium In Final Stages Of De-risking New Recovery Method; Giant JV Partner Could Fully Fund Capex When Successful

 

Building demonstration plant at Lanxess Project site

1. Introduction

Usually, when I hear about companies pursuing new recovery methods necessary to make uneconomic specialty metals projects economic, I’m very sceptic about their chances of success. The simple reason for this is that developing such methods are very capital intensive, and very difficult to scale up from bench scale (laboratorium scale) to commercial scale pilot plants. In the lithium space there are several examples of junior mining companies with likewise initiatives, backed by giant chemical companies providing tech and pilot plants for many years, but unsuccessful in proving up commercial production. So when I was introduced to Standard Lithium (SLL.V) and their story, I was sceptic at first as well.

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