$21m investment incentive for Arizona’s Prairie project
Lithium project developer Arizona Lithium has been approved for up to $21.6-million in investment incentives from Saskatchewan, Canada.
The province has approved transferable royalty credits under its OGPII programme. These credits are earned on eligible expenditures and can be claimed once the project becomes commercially operational.
The credits are applied against crown royalties payable on production of lithium at a rate of 20% in the first calendar year of operations, 30% in the second calendar year, and 50% in the third calendar year, effectively reducing the company’s liability for crown royalties.
“This conditional approval under the OGPII programme is a testament to how the province works with industry to find solutions to economic growth, and we are grateful to work with the governing bodies and operate our project there. This is one of the many development funding tools we have access to, which is a non-dilutive benefit to shareholders,” comments Arizona MD Paul Lloyd.
Located in the Williston basin, the Prairie project holds a resource of 6.3-million tonnes of lithium carbonate equivalent.
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