ASX-listed Arizona Lithium has announced a nonbinding memorandum of understanding (MoU) to develop a dedicated transload facility for its Prairie lithium project in Saskatchewan, Canada.

The proposed facility will be situated along Long Creek Rail’s (LCR's) 41-mile corridor, which runs directly across the Prairie project and connects to the Canadian Pacific Railway at Estevan. The connection gives Arizona Lithium access to North American and international markets via Class 1 rail infrastructure.

“This agreement represents a key milestone in de-risking the scale-up of the Prairie project,” said Arizona Lithium MD Paul Lloyd. “By leveraging Long Creek's established infrastructure and regional expertise, we reduce the handling logistics and trucking of our lithium products across the project area. LCR currently services the agriculture and oil and gas industry in the area, and we look forward to future collaboration with them to utilise this critical infrastructure.”

Under the terms of the MoU, Arizona Lithium will take the lead on site selection, design and construction of the transload facility, while LCR will provide rail access, logistics support, and integration into its existing network. The facility may eventually co-host a battery-grade lithium refinery, enabling efficient inbound delivery of reagents and outbound shipment of refined lithium products.

The deal follows the Saskatchewan Ministry of Energy and Resources’ approval of Phase 1 production at the Prairie lithium project, which will begin at Pad #1 using a commercial-scale direct lithium extraction (DLE) unit. The DLE unit is expected to initially produce 150 t/y of lithium carbonate equivalent, with scalability supported by replication of the processing units.

Located in the Williston basin, the Prairie project benefits from proximity to electricity, water, natural gas, paved highways, and now, a direct rail corridor. Arizona Lithium says the project’s design aligns with its broader sustainability goals, including reducing freshwater and land use.

Meanwhile, Arizona Lithium on Monday also reported that it had closed the sale of its Big Sandy lithium project and Lithium Research Center (LRC), receiving $5-million in nondilutive proceeds from Big Sandy Lithium and Advanced Lithium Research Center.

The sale, equivalent to about A$8-million, includes the transfer of all obligations associated with both assets and allows Arizona Lithium to shift its full focus to advancing Prairie.

“We are very pleased to have closed the transaction of selling the Big Sandy lithium project and the LRC. In doing so, the company is in a very strong cash position, with much leaner overhead expenditures,” said Lloyd.

“With some upwards movement in the lithium spot price recently, the company is very well positioned with its Prairie lithium project being a shovel ready project that is fully permitted for the first phase of production.”

The company recently raised an additional A$4.25-million through an oversubscribed share purchase plan, further bolstering its funding position.

Lloyd and executive director Zach Maurer will participate in the Canadian Critical Minerals Investment Trade Mission to Japan and South Korea later this month. Led by Natural Resources Canada, the mission includes engagements with major companies and government officials in both countries.