PFE acquires more land in Smackover near Exxon’s lithium project
This morning, Pantera Minerals (ASX: PFE) announced that it had increased its exposure to the Smackover Formation in southern Arkansas, USA.
The Smackover Formation is a new hub of activity for lithium brine aspirants, including none other than the US$465BN capped Exxon Mobil - one of the world’s largest oil and gas companies.
There has been a land rush in the Smackover Formation, with the following companies moving rapidly to increase their holdings in this region of southern Arkansas, all with the aim of producing lithium from brines:
- US$465BN Exxon
- US$19BN Albemarle (the world’s biggest lithium producer by market cap)
- US$675M Standard Lithium
- US$800M Tetra Technologies
PFE has secured a 35% stake in another company, Daytona Lithium, which now holds 8,416 acres right next to Exxon Mobil’s landholdings in the Smackover:
The main news out of today’s PFE announcement was the addition of 3,091 acres in the Smackover, an increase of 58% on the holdings Daytona Lithium had before today.
PFE is targeting 50,000 acres of land over this region.
Previously, PFE had secured a 35% stake in Daytona Lithium via a $2M convertible note.
Looking a bit closer at Pantera’s area here - the scope to expand is via an “exclusive abstract” agreement:
PFE has access to a proprietary database and a 6-month exclusive agreement with a commercial “leasing abstract” company, which is the only provider in the region.
To our understanding, leasing abstract companies are capable of tracking down complex mineral rights networks and owners in these southern US states - allowing companies like PFE’s Daytona Lithium to enter into leasing negotiations.
We think this could provide PFE an edge in rapidly growing its landholdings in the Smackover Formation.
What’s next for PFE?
PFE said today that, “Discussions with Direct Lithium Extract technology providers [are] to begin imminently.”
That’s good news, because if PFE can secure a brine sample, it gives PFE a chance to show that there’s potentially extractable lithium on its projects.
Furthering that aim, PFE also noted that it is working towards identifying an initial well location to test brine flow rates and lithium grade on PFE’s leased acreage.
As a result we are looking for the following three things
🔲Secure brine sample
🔲Identify an initial well location
🔲Send brine sample to DLE tech providers
