PotlatchDeltic Executes Lithium/Bromine Lease Agreement in Arkansas
PotlatchDeltic Corporation (the "Company") (NASDAQ:PCH) today announced that it has entered into a mineral lease agreement (the "Lease") with TETRA Brine Leaseco LLC. ("TETRA"). The Company has granted TETRA exclusive rights to conduct brine exploration and production on approximately 900 surface acres in Lafayette County, Arkansas, within a higher-grade area in the Smackover Formation rich in lithium reserves. The lease anticipates an initial five-year term for planning, engineering, and construction before potential production begins. In addition to lease payments for the duration of the lease, the lease provides for: (1) future production payments for bromine; and (2) royalty payments for the profitable extraction of lithium, with reference to the rate to be set by the Arkansas Oil and Gas Commission.
"We view the Lease with TETRA as a great first step in demonstrating the lithium potential from our brine deposits," said Eric Cremers, President and Chief Executive Officer. "We estimate we have 5,000 – 7,000 acres with lithium-bearing opportunities that are located within the higher-grade area in the Smackover Formation, where billions in future lithium-related investments have been announced. Accordingly, we are currently in lease discussions with other parties. We believe we are well-positioned to drive long-term value for our shareholders through all of our natural climate solution opportunities," stated Mr. Cremers.
About PotlatchDeltic
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) with ownership of 2.1 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi, and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to corporate responsibility. More information can be found at www.potlatchdeltic.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the duration of the lease, the successful production of brine, the potential profitable extraction of lithium, and the future royalty rate to be set by the Arkansas Oil and Gas Commission. Words such as "anticipates," "future," "long-term," "potential," and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements because they discuss the future expectations or state other "forward-looking" information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic's control including accuracy of mineral exploration activity, reserves or minerals, regulatory or government requirements, approvals, or other actions, fluctuations in the market for lithium, and other factors. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.
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(Investors)
Wayne Wasechek
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(Media)
Anna Torma
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