VANCOUVER, British Columbia, October 30, 2019 (GLOBE NEWSWIRE) – Standard Lithium Ltée (“Standard lithium“or the”Society“) (TSXV: SLL) (OTCQX: STLHF) (FRA: S5L) is pleased to announce that it has entered into a loan and guarantee agreement of C $ 5,000,000 (the”To lend“) with LANXESS Corporation (the”Lender“). The loan has been fully advanced to Standard Lithium in the amount of US $ 3,750,000, based on an agreed exchange rate, and will be used in the ongoing development of a demonstration plant in South Arkansas. , for the demonstration of Standard Lithium’s proprietary process for the extraction of lithium from brine solutions (the “Demonstration plant“).
The principal of the loan will be convertible at the option of the lender at a rate such that for each C $ 0.80 of principal converted, the lender will receive one common share of Standard Lithium (each, one “Ordinary share“) and a half warrant to purchase one additional common share with an exercise price of C $ 1.20 per common share and a term of three years (each whole warrant, a”To guarantee“). Assuming the full conversion of the loan principal, the lender would receive 6,251,250 common shares and 3,125,625 warrants. All securities issued upon loan conversion will be subject to a legal hold period of four months and one day from the date the loan was made.
The principal outstanding on the loan will bear interest at an annual rate of 3.0%, subject to adjustments. In the event that Standard Lithium has a positive consolidated operating cash flow as shown in its financial statements, Standard Lithium will pay the lender a commission of 4.5% per annum on the average daily principal amount outstanding on the loan. from the date of issue until the date on which Standard Lithium’s consolidated operating cash flows are positive. From the date that Standard Lithium’s consolidated operating cash flow is positive, the annual interest rate increases to 7.5%. Prepayments are permitted with the prior written approval of the lender and are subject to a prepayment charge of 3.0% on the prepayment portion of the loan.
The loan is due and payable in full on the fifth anniversary, provided that at any time after the second anniversary, the lender may choose an earlier maturity date upon 60 days notice to Standard Lithium. The Loan is secured by a charge on the shares of the direct and indirect subsidiaries of Standard Lithium (collectively, the “”Subsidiaries”) Arkansas Lithium Corp. (which operates the demonstration plant), Vernal Minerals Corp. (a holding company which owns the shares of Arkansas Lithium Corp.) and 2661881 Ontario Limited (which owns the intellectual property rights to be used in the operation of the Demonstration Plant), as well as a security interest in tangible property and intangibles of Standard Lithium and its Subsidiaries.
About Standard Lithium Ltd.
Standard Lithium is a specialty chemicals company focused on upgrading existing large-scale lithium brine resources in the United States. The Company believes that new lithium production can be started quickly by minimizing project risks at the selection stage (resources, policies, geographic, regulatory and permitting) and by taking advantage of advances in technologies and processes. lithium extraction. The Company’s flagship project is located in southern Arkansas, where it is engaged in testing and demonstrating the commercial viability of mining lithium from more than 150,000 acres of licensed brine operations. using the Company’s proprietary selective extraction technology. The Company also continues to develop the resources of more than 30,000 acres of separate brine claims located in Southwest Arkansas and approximately 45,000 acres of mineral claims located in the Mojave Desert, County of. San Bernardino, California.
Standard Lithium is listed on the TSX Venture Exchange under the symbol “SLL”; listed on the OTC – Nasdaq Intl Designation under the symbol “STLHF”; and on the Frankfurt Stock Exchange under the symbol “S5L”. Please visit the company’s website at www.standardlithium.com.
LHA Investor Relations, Mary Magnani, (415) 433-3777, [email protected]
On behalf of the Council,
Standard Lithium Ltée
Robert Mintak, CEO and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “anticipate”, “target,” plan “,” foresee “,” may “,” plan “and other similar words or expressions, statements or forward-looking information. Such forward-looking statements or information may relate to future commodity prices, the accuracy of mineral or resource exploration activities, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mining properties or infrastructure, fluctuations in the lithium and its derivatives market, changes in exploration costs and government regulations in Canada and the United States, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based on a number of assumptions and estimates which, although considered reasonable by the Company, are inherently subject to risk. commercial, economic, competitive, political and social, contingencies and uncertainties. Many factors, known and unknown, could cause any results, performance or achievements to differ materially from the results, performance or achievements which are or may be expressed or implied by these forward-looking statements. The Company does not intend, and assumes no obligation, to update such forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other event affecting such statements and information other than those required by laws, rules and regulations.