TSX-V-listed lithium development and technology company Volt Lithium on Monday announced strategic investment of $1.5-million by a company with operations in the Delaware basin of West Texas for the deployment of a field unit.
The field unit will use Volt’s direct lithium extraction technology to produce lithium hydroxide monohydrate.
This endeavour builds upon Volt’s successful efforts at its permanent demonstration plant located in Calgary, Alberta.
Commenting on this milestone, Volt president Alex Wylie expressed enthusiasm for the collaboration. “Volt has spent the past several months working with this operator to ensure the successful extraction of lithium from this operator’s brine at our demonstration plant.”
The strategic investment will be executed through a non-brokered private placement, with 6 818 182 units of Volt issued at $0.22 per unit. Each unit comprises one common share and one-half of one common share purchase warrant, with each warrant exercisable into one common share at $0.35 a share.
The net proceeds from the private placement will fund the construction and deployment of the field unit in the Delaware basin, along with supporting general corporate purposes.
The completion of the private placement, expected around May 1, 2024, is subject to review and approval by TSX-V.
The Delaware basin is one of the biggest conventional oil- and gas-producing basins in North America, with about 10.9-million barrels of water produced every day in association with the oil and gas production.
Volt is a lithium development and technology company aiming to be North America’s first commercial producer of lithium hydroxide and lithium carbonates from oilfield brine.