Forward Water Technologies Corp (TSX-V:FWTC) told investors it has signed a Heads of Agreement with a leading developer of battery-grade lithium sourced from aquifers using direct lithium extraction (DLE) technology.
In a statement, the company said the document is a “clear milestone” towards completing a definitive agreement between the two parties for the utilization of on-site forward osmosis equipment via a lease-to-own model.
It also includes the specific commercial terms aimed at achieving growth and success for both companies in the sustainable aquafer-based lithium sector.
The proposed lease-to-own model presents an innovative solution designed to address water reusability, and foster long-term sustainability and value for all stakeholders, Forward Water added.
"Reaching a mutually acceptable set of commercial terms represents a strategic step forward for both organizations and potentially opens up new opportunities for us to expand our market presence and deliver enhanced value to our stakeholders,” commented Forward Water CEO and president C. Howie Honeyman.
The company said the proposed definitive agreement will be subject to receipt of all necessary approvals, completion of due diligence, and agreement on definitive terms, with both parties “determined to undertake these processes with diligence, aiming for a swift finalization in the near future.”
Founded by GreenCentre Canada, a government-supported technology innovation center, Forward Water Technologies aims to implement its FO technology on a large scale across multiple sectors, including industrial wastewater, oil and gas, mining, and agriculture. The company also initiated early-stage R&D for the treatment of food and beverage process streams.
Contact the author at stephen.gunnion@proactiveinvestors.com