The Company holds a 3% net smelter return (NSR) royalty interest in the Clayton Valley Project (CV Project), a lithium brine project located in Esmeralda County, Nevada, within Clayton Valley. The project is situated near existing lithium operations and has benefited from extensive exploration, resource evaluation, and technical development.
The CV Project was advanced through multiple stages of study, including the completion of a preliminary economic assessment (PEA) and subsequent update, which outlined the potential for lithium extraction from the project’s brine resources. The studies identified favourable brine chemistry with low impurity levels and evaluated the potential application of direct lithium extraction (DLE) technologies.
From 2019 to March 2026, the project was operated by SLB under an earn-in agreement, during which time it advanced permitting, technical testing, and pilot-scale development activities. Between 2021 and 2023, the project received key regulatory approvals that supported the construction and operation of a demonstration facility. Construction and commissioning of the pilot plant commenced in 2023, with testing focused on lithium recovery, product quality, and process performance under continuous operating conditions.
In September 2024, SLB achieved the technical and operational milestones required under the earn-in agreement, including the demonstration of continuous lithium carbonate production at specified capacity and purity levels. Following completion of the earn-in process, SLB acquired a 100% interest in the CV Project in March 2026. The Company retained a 3% NSR royalty on production from 541 claims within the project area.
The Company no longer holds an ownership interest in or operational responsibility for the CV Project. Its future exposure to the project is through the retained royalty interest, which provides potential participation in any future production from the project. Advancement of the CV Project remains subject to regulatory approvals, permitting requirements, technical performance, and market conditions.