Lithium developer firms alliance with Navajo corporation


Staff reporter

Australian-listed Arizona Lithium has formalised a strategic alliance with Navajo Transitional Energy Company (NTEC) to try to advance its Big Sandy lithium project in Arizona, USA, agreeing to pay the Navajo Nation entity about A$32 million in shares to help get a mine permitted.

NTEC produces coal in New Mexico and Wyoming and owns part of the Four Corners coal-fired power station in New Mexico. It also has an interest in a rare earth project in Texas.

Arizona Lithium aims to “leverage NTEC’s world-class expertise in mining operations and environmental stewardship” to move Big Sandy through permitting, exploration drilling, mine design, and environmental assessments.

NTEC CEO Vern Lund will join the lithium junior’s board under the deal, first outlined last year by the two parties in a strategic alliance term sheet.

“Big Sandy represents a substantial development opportunity holding 320,800 tonnes of lithium carbon equivalent, with only 4% of the project drilling, providing significant exploration upside once permitted,” Arizona Lithium managing director Paul Lloyd said.

The company plans to issue NTEC about 424 million shares at A7.5c a share subject to project permitting milestones being achieved.

ASX-listed Arizona Lithium’s shares are currently trading around 2.5c, capitalising the company at circa-$114 million.

 

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