Smackover Lithium Submits Royalty Application to Arkansas Oil and Gas Commission for South West Arkansas Project
Smackover Lithium, a joint venture between Standard Lithium (NYSE:A:SLI) and Equinor, has submitted an application to establish a lithium royalty for the Reynolds Unit in their South West Arkansas (SWA) Project. The proposed quarterly gross royalty of 2.5% will be based on lithium production and FastMarkets North American Index Price for technical grade lithium carbonate.
Combined with the existing brine fee of $65.05 per acre per year, the total proposed royalty compensation amounts to approximately 3% based on current lithium prices. The hearing is scheduled for May 28th, 2025, at the Donald W. Reynolds Community Center in Magnolia, Arkansas.
Smackover Lithium, una joint venture tra Standard Lithium (NYSE:A:SLI) ed Equinor, ha presentato una domanda per istituire una royalty sul litio per l'unità Reynolds nel loro progetto South West Arkansas (SWA). La royalty lorda trimestrale proposta del 2,5% sarà calcolata sulla produzione di litio e sul prezzo dell'indice FastMarkets North American per il carbonato di litio di grado tecnico.
Insieme alla tassa esistente sulle saline di 65,05 dollari per acro all'anno, la compensazione totale proposta per la royalty ammonta a circa il 3% basandosi sui prezzi attuali del litio. L'udienza è fissata per il 28 maggio 2025, presso il Donald W. Reynolds Community Center a Magnolia, Arkansas.
Smackover Lithium, una empresa conjunta entre Standard Lithium (NYSE:A:SLI) y Equinor, ha presentado una solicitud para establecer una regalía de litio para la unidad Reynolds en su proyecto South West Arkansas (SWA). La regalía bruta trimestral propuesta del 2,5% se basará en la producción de litio y el precio del índice FastMarkets North American para carbonato de litio de grado técnico.
Combinado con la tarifa existente por salmuera de $65.05 por acre por año, la compensación total propuesta por regalías asciende aproximadamente al 3% según los precios actuales del litio. La audiencia está programada para el 28 de mayo de 2025, en el Donald W. Reynolds Community Center en Magnolia, Arkansas.
Smackover Lithium는 Standard Lithium (NYSE:A:SLI)과 Equinor의 합작 투자로, South West Arkansas (SWA) 프로젝트 내 Reynolds 유닛에 대한 리튬 로열티 설정 신청서를 제출했습니다. 제안된 분기별 총 로열티율 2.5%는 리튬 생산량과 기술 등급 리튬 탄산염에 대한 FastMarkets 북미 지수 가격을 기준으로 합니다.
기존의 액체광물 수수료인 연간 에이커당 $65.05와 결합할 경우, 현재 리튬 가격 기준으로 총 제안된 로열티 보상은 약 3%에 해당합니다. 심리는 2025년 5월 28일에 아칸소주 매그놀리아의 Donald W. Reynolds Community Center에서 예정되어 있습니다.
Smackover Lithium, une coentreprise entre Standard Lithium (NYSE:A:SLI) et Equinor, a soumis une demande pour établir une redevance sur le lithium pour l'unité Reynolds dans leur projet South West Arkansas (SWA). La redevance brute trimestrielle proposée de 2,5% sera basée sur la production de lithium et le prix de l'indice FastMarkets North American pour le carbonate de lithium de qualité technique.
Combinée avec la redevance existante sur la saumure de 65,05 $ par acre par an, la compensation totale proposée pour la redevance s'élève à environ 3% en fonction des prix actuels du lithium. L'audience est prévue pour le 28 mai 2025, au Donald W. Reynolds Community Center à Magnolia, Arkansas.
Smackover Lithium, ein Joint Venture zwischen Standard Lithium (NYSE:A:SLI) und Equinor, hat einen Antrag zur Einrichtung einer Lithium-Royalty für die Reynolds Unit in ihrem South West Arkansas (SWA) Projekt eingereicht. Die vorgeschlagene vierteljährliche Bruttoroyalty von 2,5% basiert auf der Lithiumproduktion und dem FastMarkets North American Indexpreis für technisches Lithiumcarbonat.
In Kombination mit der bestehenden Solegebühr von 65,05 USD pro Acre und Jahr beläuft sich die insgesamt vorgeschlagene Royalty-Vergütung auf etwa 3% basierend auf den aktuellen Lithiumpreisen. Die Anhörung ist für den 28. Mai 2025 im Donald W. Reynolds Community Center in Magnolia, Arkansas, angesetzt.
- Proposed royalty rate is competitive and enables capital investment while ensuring fair compensation for brine owners
- Project advances towards final investment decision, indicating progress in development
- Total compensation package of approximately 3% demonstrates commitment to stakeholder value
- Additional royalty payments may impact project economics and profitability
- Final approval from AOGC still pending, creating regulatory uncertainty
Insights
Smackover's lithium royalty application represents key regulatory progress for their Arkansas project, moving closer to final investment decision.
This royalty application marks a critical regulatory milestone for the South West Arkansas Lithium Project. The proposed structure includes a 2.5% quarterly gross royalty based on lithium production volume and carbonate index prices, plus the existing $65.05 per acre annual brine fee. Together, these equal approximately 3% total compensation at current lithium prices.
What's particularly noteworthy is that this application specifically addresses the Reynolds Unit for Phase I of the project, indicating a methodical, phased development approach. The press release states this royalty is "higher than comparable projects globally" on an LCE basis, suggesting the partners are balancing competitive compensation for resource owners while maintaining project viability.
Establishing clear royalty structures is a fundamental prerequisite before any resource project can advance to final investment decision, as these terms directly impact long-term economics and stakeholder relationships. The upcoming AOGC hearing on May 28th represents a regulatory gateway that must be successfully navigated.
The continued collaboration between Standard Lithium and energy major Equinor in this joint venture adds credibility to the development approach. Their willingness to propose this royalty structure suggests confidence in the project's underlying economics despite paying premium rates to resource owners.
Royalty application provides economic clarity for SWA Lithium Project, signaling continued progress toward potential production decision.
This royalty submission represents tangible forward progress for Standard Lithium's South West Arkansas Project. The proposed structure establishes clear economic parameters that will affect project returns and stakeholder compensation. By combining a 2.5% quarterly gross royalty with the existing $65.05 per acre annual brine fee, the total compensation package of approximately 3% creates a framework that balances resource owner benefits with project economics.
The explicit mention that this application allows them to "continue the path towards a final investment decision" indicates the project is systematically advancing through its pre-development phases. This application addresses one of several necessary components required before the project can proceed to construction.
From an investment perspective, Equinor's continued participation as joint venture partner provides important validation and potential access to capital. Both partners' public statements supporting the royalty proposal suggest alignment on project economics and development strategy.
While this announcement doesn't guarantee project approval or specify timelines for subsequent development milestones, it does reduce one element of uncertainty in the project's advancement. The scheduled May 28th hearing will determine whether regulators accept this proposed structure, potentially clearing the way for further development steps for this Phase I portion of the broader South West Arkansas Project.
LEWISVILLE, Ark., May 06, 2025 (GLOBE NEWSWIRE) -- Smackover Lithium, a Joint Venture (“JV”) between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE:A:SLI) and Equinor, announced that SWA Lithium LLC has submitted an application to the Arkansas Oil and Gas Commission (“AOGC”) to establish a fair and equitable lithium royalty for the Reynolds Unit for Phase I of its South West Arkansas (“SWA”) Project in Lafayette and Columbia Counties, Arkansas. The hearing is scheduled for Wednesday, May 28th, 2025, at 9:00 am CDT and is to be held at the Donald W. Reynolds Community Center Grand Hall at South Arkansas University (100 East University) in Magnolia, Arkansas.
The application proposes a quarterly gross royalty of
“Working with landowners and the AOGC to establish a fair and equitable royalty is key to the SWA Project’s success,” said Standard Lithium’s CEO, David Park, “The proposed royalty generously compensates brine owners, is fair for industry, and encourages development of the Smackover resource. The royalty is only the beginning of the economic impact this project will have for South Arkansas and the rest of the state.”
“Establishing a royalty for the SWA Project allows us to continue the path towards a final investment decision,” said Allison Kennedy Thurmond, VP for US Lithium at Equinor. “The proposed royalty rate enables capital investment, infrastructure improvements, jobs, tax revenue and brings tremendous benefits to the Smackover region.”
For more information about the SWA Project and Smackover Lithium, please visit www.smackoverlithium.com
About Standard Lithium Ltd.
Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. The Company prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated Direct Lithium Extraction (“DLE”) and purification process. The Company’s flagship projects are located in the Smackover Formation, a world-class lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor, Standard Lithium is advancing the South West Arkansas project, a greenfield project located in southern Arkansas, and actively exploring promising lithium brine prospects in East Texas. Standard Lithium also holds an interest in certain mineral leases in the Mojave Desert in San Bernardino County, California.
Standard Lithium trades on both the TSX Venture Exchange and the NYSE American under the symbol “SLI”. Please visit the Company’s website at www.standardlithium.com.
About Equinor
Equinor is an international energy company committed to long-term value creation in a low-carbon future. Equinor’s portfolio of projects encompasses oil and gas, renewables and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Norway, Equinor is the leading operator on the Norwegian continental shelf and is present in around 30 countries worldwide. Equinor’s partnership with Standard Lithium to mature DLE projects builds on its broad US energy portfolio of oil and gas, offshore wind, low carbon solutions and battery storage projects.
For more information on Equinor in the US, please visit: Equinor in the US - Equinor
Investor and Media Inquiries
Chris Lang
Standard Lithium Ltd.
+1 604 409 8154
investors@standardlithium.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to intended development timelines, future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, including approval of the royalty application submitted to the AOGC, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for lithium and its derivatives, changes in exploration costs and government regulation in Canada and the United States, and other factors or information. Such forward-looking statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
FAQ
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