Texas-based LibertyStream buys Commercial Lithium Carbonate Refining Facility; Announces $3.53 Million Funding through Promissory Note with Top Investment Firm and Insiders
LibertyStream Infrastructure Partners Inc., a leading player in the direct lithium extraction (DLE) sector, has made a significant stride in its journey towards commercial lithium production. The company has recently acquired a commercial lithium carbonate refining unit in Texas, capable of producing up to 10 tonnes per annum of industrial and battery grade lithium carbonate[1][3][4].
This acquisition is a critical step forward, as it allows LibertyStream to provide bulk lithium carbonate samples from its field operations. This is essential for negotiating future offtake agreements with customers, according to Alex Wylie, President & CEO of LibertyStream[1].
In addition to the acquisition, LibertyStream announced a $3.53 million promissory note financing involving a leading institutional investment firm and insiders to support this development[1][2][4]. The refining unit will enable LibertyStream to cater to the specific lithium carbonate needs of its future customers.
Prior to this refining unit purchase, LibertyStream had deployed and scaled its DLE technology at the Permian Basin. This has resulted in North America’s largest operational DLE system by early 2025, capable of processing over 10,000 barrels per day of produced water[1].
The Maturity Date for the Notes is one year from the date of issuance. The Notes will bear simple interest at a rate of 12% per annum, with interest payable on the Maturity Date. Notably, Alex Wylie, the Company’s President and CEO, will purchase $130,000 aggregate principal amount of Notes and 110,638 Bonus Shares[1].
The Bonus Shares will be subject to a four-month hold period commencing from the date of issuance. The Notes will be senior and secured against all of the Company's present and after-acquired property, except for the Notes purchased by Mr. Wylie which will be unsecured[1].
The 1,300 DLE runs and system improvements have led to consistency of results in the Texas operations. LibertyStream has focused the past six months conducting intensive operations in Texas, during which the company completed over 1,300 DLE runs[1]. The company has leveraged the knowledge gained over this period to continuously improve its system, including adding a pre-treatment step to knock out iron and organics prior to the DLE process.
The Closing of the Offering is subject to customary closing conditions, including TSXV conditional approval. The Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101. The Company is relying on certain exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101[1].
This latest development in the commercial lithium carbonate refining sector concerning LibertyStream is a significant step towards full-scale commercial lithium carbonate production from its direct lithium extraction operations[1][3][4]. With the acquisition of this refining facility in Texas and financial backing, LibertyStream is well-positioned to meet the growing demand for lithium carbonate in the global market.
[1] - Press Release: LibertyStream Infrastructure Partners Acquires Commercial Lithium Carbonate Refining Unit in Texas, September 2023 [2] - Press Release: LibertyStream Announces $3.53 Million Promissory Note Financing, September 2023 [3] - Press Release: LibertyStream Deploys First Direct Lithium Extraction Field Unit in the Permian Basin, September 2022 [4] - Press Release: LibertyStream Scales Up to Generation 5 Unit by February 2025, August 2023
Technology plays a crucial role in LibertyStream's operations, as the company has deployed and scaled its direct lithium extraction (DLE) technology at the Permian Basin, leading to North America’s largest operational DLE system by early 2025 [1]. In addition, the newly acquired commercial lithium carbonate refining unit in Texas is equipped with modern technology, capable of producing up to 10 tonnes per annum of industrial and battery grade lithium carbonate [1].
