A company aiming to be one of North America’s first commercial producers of lithium carbonate from oilfield brine, LibertyStream, has signed a non-binding term sheet with lending firm Endurance Finance Partners as arranger for a proposed financing framework of up to $95-million.

The proposed framework includes a delayed-draw senior secured construction credit facility to fund the construction of Freedom 1 and Freedom 2, together with a future-site financing framework under which Endurance would have the opportunity to provide additional financing for future LibertyStream sites for a full framework of up to $95-million.

Any future-site financing would be evaluated and approved on a site-by-site basis.

The proposed credit facility would be drawn against independently certified construction milestones, bear interest at 12.25% a year and mature five years following execution of the definitive agreements establishing the facility.

The term sheet also includes fees, minimum-return protections and the issuance of such number of common share purchase warrants of LibertyStream equal to up to 10% in respect of the initial $45-million credit facility for Freedom 1 and Freedom 2 upon initial funding.

The warrants will be exercisable for a term of seven years following issuance. The final terms of the warrants, including the number of warrants to be issued to Endurance, will be determined in the definitive agreements establishing the facilities.

Funding under the facilities remains subject to satisfactory confirmatory due diligence, internal investment and credit approvals, negotiation and execution of definitive agreements, LibertyStream completing an investment commitment in such amount as may be agreed to between the company and Endurance, execution of applicable project agreements receipt of all required corporate and regulatory approvals, and other customary funding and closing conditions.

Freedom 1 is LibertyStream's first commercial-scale direct lithium extraction plant planned to produce 1 000 t/y of battery-grade lithium carbonate, in Texas.