Standard Lithium And Equinor Enters Partnership To Accelerate The Development Of Sustainable Lithium Projects In The Smackover Formation

Standard Lithium Ltd. ("Standard Lithium" or the "Company") (TSXV:SLI) (NYSE:SLI) (FRA:S5L), a leading near-commercial lithium development company, today announced the closing of a landmark strategic partnership (the "Transaction") with Equinor ASA (NYSE:EQNR), a multinational energy company and recognized leader in renewables and low-carbon solutions, to accelerate the development of Standard Lithium's large-scale, sustainable lithium projects in the Smackover Formation.

 

The Transaction includes Equinor's contribution of up to US$160 million, representing its total gross project-level investment and reflecting its 45% ownership stake in the two entities. This investment includes a US$30 million cash payment to Standard Lithium at closing, a work program solely funded by Equinor of US$60 million, representing a US$33 million carry by Equinor for Standard Lithium's portion, and US$27 million for Equinor's portion, at the South West Arkansas Project (SWA) and East Texas (ETX) properties (ETX and together with SWA, the "Projects"), and up to US$70 million in payments to Standard Lithium subject to both parties taking positive Final Investment Decisions. Standard Lithium and Equinor will each own 55% and 45% of the Projects respectively, with Standard Lithium retaining operatorship.

Dr. Andy Robinson, Director, President and COO said: "We are delighted to have concluded this transaction and begun an exciting new partnership with Equinor. We believe this partnership with a global energy major validates the quality of our team, our DLE flowsheet and experience, and our world-class lithium-brine resources in Arkansas and Texas. We're at a crucial stage in our Company's growth and this partnership with Equinor will be fundamental to the continued de-risking and execution of these important projects. One thing that we have observed in the lithium world over the past decade is that strong, mutually-aligned partnerships are the key to successful project execution and operation, and we believe we have aligned with the right partner to take SLI and the lithium industry in Arkansas and Texas to the next level."

Transaction Highlights

• Partnership between Standard Lithium and Equinor is strategic and complementary; it combines SLI's unparalleled DLE and Smackover brine processing expertise, plus world-class assets, with a global energy major with deep experience in sub-surface assessment and production, project development, financing, construction and operations;
• Significantly de-risks project execution at Standard Lithium's Projects, including the development and project execution at SWA;
• The Transaction immediately strengthens Standard Lithium's financial position; additionally, the cost carry component on agreed project development expenditures at the Projects provides further benefits and results in no dilution to existing shareholders;
• Equinor as a partner has a track record of project excellence;
  • Strong alignment between Standard Lithium and Equinor to develop a sustainable lithium business, adhering to high levels of environmental and social responsibility.