After seeing a $127.1 million investment from the conglomerate’s investment arm, Standard Lithium (TSXV: SLI) announced today the signing of a letter of intent with Koch Minerals & Trading (KM&T). The deal is for the purchase of lithium chemical off-take and the procurement of key raw materials.
The company said that the primary gold of the deal is “to develop a market-based pricing mechanism for KM&T to procure lithium hydroxide.”
“Developing a market-based pricing off-take structure with KM&T at our South-West Arkansas project will allow the Company to benefit from the projected high prices for lithium chemicals in the coming decade and beyond,” said Standard Lithium CEO Robert Mintak.
The deal also includes KM&T assisting the lithium firm procuring key raw materials and chemical reagents “by leveraging Koch’s expertise, networks, and global scale.”
The company is working on its flagship South West Arkansas project for the commercial viability of extracting lithium extraction from over 150,000 acres of permitted brine operations.
Standard Lithium last traded at $7.68 on the TSX Venture.
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