Vancouver-headquartered LithiumBank Resources has entered into a binding option agreement to acquire up to 160 acres of privately owned land in the Sturgeon Lake area of Alberta.

The site has been identified as a preferred location for the company's planned central lithium processing facility for its flagship Boardwalk lithium brine project.

The land package is strategically situated within the Boardwalk project area to capitalise on existing project-level infrastructure through a separate Letter of Intent signed in July.

This option provides LithiumBank with the first right to acquire the property.

The company will have up to three years following the effective date of July 30 to exercise the option. It is anticipated to provide ample space for future processing infrastructure, including a centralised direct lithium extraction (DLE) processing facility.

LithiumBank will have the option to select up to 160 acres from a designated 320-acre area. The land is accessible through a paved township road, about 800 m from Highway 43. The land is served by a 138 kV power transmission line along the township access road.

An active natural gas pipeline traverses the southern portion of the land.

The finalised Infrastructure Option will not only provide LithiumBank with the opportunity to realise substantial cost savings compared to constructing new infrastructure required for extracting lithium brine from Boardwalk, but will also encompass numerous access and right-of-way provisions essential for such extraction.

The economic benefits of strategic land and infrastructure within the Boardwalk project area will be reflected in the feasibility study for Boardwalk currently being finalised by the company for publication next year.

"This option represents another important step in advancing Boardwalk toward commercial development," says LithiumBank CEO Rob Shewchuk. He adds that securing control of a potential processing site early in the development process allows the company to optimise project design, preserve optionality and continue derisking one of North America's largest lithium brine development projects.

The proposed central processing facility is expected to receive lithium-rich brine from production wells throughout the Boardwalk project area where lithium would be recovered using DLE technology.

The location was selected following preliminary engineering and infrastructure assessments that considered land availability, access, existing infrastructure and future expansion opportunities.

The transaction remains subject to completion of due diligence, negotiation of definitive documentation and customary regulatory approvals.