Arizona Lithium Limited (ASX: AZL), an emerging lithium developer with key assets in North America, has announced it will proceed with the next phase of development at its Prairie Lithium Project in Saskatchewan, following receipt of critical regulatory approval and the successful completion of an oversubscribed Share Purchase Plan (SPP).
These developments mark a major step forward for the company, as it accelerates its plans to become a low-cost, vertically integrated lithium producer, capitalising on growing demand for lithium from the global electric vehicle (EV) and energy storage sectors.
The Saskatchewan government has granted Arizona Lithium the necessary regulatory approvals to begin construction of its planned Direct Lithium Extraction (DLE) pilot plant. The facility will test the company’s proprietary processing technology and produce lithium chloride concentrate for evaluation by potential offtake partners.
The approval represents a key permitting milestone that enables Arizona Lithium to move from the exploration and research phase to pilot-scale production, validating its extraction process at a commercial scale. Construction of the plant is expected to commence shortly, with commissioning anticipated in the second half of 2024.
This progress strengthens the company’s operational foundation and brings it closer to first production and future commercialisation.
Arizona Lithium also announced the completion of an oversubscribed SPP, raising approximately A$3.9 million from eligible shareholders. The SPP followed a previous institutional placement, bringing total recent capital raised to more than A$13 million.
The capital raising was conducted at 2.3 cents per share, representing a modest discount to market prices. The strong uptake reflects growing investor confidence in the Prairie Lithium Project and Arizona Lithium’s broader execution capabilities.
DLE pilot plant, as well as exploration and resource expansion drilling across the Prairie Lithium Project. A portion of the funds will also support ongoing research and development aimed at optimising lithium extraction processes, alongside general working capital and corporate expenses to maintain operational momentum.
Management reaffirmed its commitment to prudent capital allocation, ensuring funds are deployed to high-impact, near-term growth initiatives.
The Prairie Lithium Project is located within Saskatchewan’s Williston Basin, a region known for its oil and gas production but increasingly recognised for its lithium brine potential. Arizona Lithium has already defined a maiden resource of over 4.1 million tonnes of lithium carbonate equivalent (LCE), making it one of the largest and most advanced lithium brine resources in Canada.
What distinguishes Prairie is its favourable geology, infrastructure access, and government support, which collectively provide a strong platform for project development. The region offers access to skilled labour, roads, water, and energy infrastructure—key advantages for project execution and future scalability.
The company’s strategy is to produce battery-grade lithium products using environmentally responsible DLE technology, which offers reduced land disturbance, faster processing times, and lower water usage compared to traditional evaporation ponds.
As the global lithium supply chain shifts to meet rising EV and battery storage demand, Arizona Lithium is positioning itself as a secure, ESG-aligned supplier from a Tier-1 jurisdiction. The company continues to pursue partnerships with technology providers, equipment suppliers, and potential downstream customers to accelerate development and enhance project economics.
In parallel, Arizona Lithium is conducting environmental baseline studies, community engagement, and supply chain assessments to align the Prairie Project with best-practice standards for sustainability and transparency.
The DLE pilot plant will play a central role in showcasing the scalability and cost-effectiveness of its approach, while also supporting future regulatory submissions and offtake agreements.
In addition to Prairie, Arizona Lithium is advancing its Big Sandy Lithium Project in Arizona, USA, which contains a significant clay-based resource. Together, the two projects provide a dual-asset development platform across North America, offering geological diversity and multi-market exposure.
The company’s long-term vision is to become a fully integrated lithium supplier—from resource to processing and potentially downstream conversion—leveraging its asset base and in-house technical capabilities.
Arizona Lithium believes its portfolio offers unique advantages in terms of low sovereign risk, short transport routes to battery manufacturers, and strong support from both Canadian and US governments for critical minerals development.
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