One World Lithium Inc. (CSE:OWLI, OTCQB:OWRDF) told investors it has signed an Assignment and License Agreement with MatterGreen LLC (MG), an arm’s length Oregon limited liability company, for MG’s two separate patent applications for lithium carbonation.
Lithium carbonation is a lithium extraction technology using an advanced carbon dioxide injection process.
Following the Assignment, Vancouver-based One World Lithium (OWL) said it will be the sole and exclusive owner of the OWL Patent Applications, while MG will continue to develop the technology on its behalf to enable it to extract lithium in a commercial and cost-effective producing plant.
OWL noted that the two divisional patent applications are for natural brine and slurries made from pegmatite, clay, volcanic rock and sediment. Additional patents may be filed in the future as a result of the research & development (R&D) work to be carried out with MG, the company added.
“The objective is to commercialize the OWL Patent Application technology which seeks to rapidly, economically, and environmentally extract Lithium and to generate Lithium Carbonate directly from a brine while reducing presently common consumables in existing production practices including adsorbents, absorbents, membranes and electrodes, and environmental burdens originating from substantial uses of local fresh water, acids, and solid chemicals,” MG said in a statement.
The basic terms of the agreement can be found here.
Following the Assignment, OWL said it has also agreed to license back to MG a perpetual, non-exclusive, royalty-bearing worldwide license to use the OWL Patent Applications and any technology or improvements arising out of MG’s lab work. In consideration for the license back, MG will pay OWL a 5% gross royalty back from all income received by MG from the use, sale or license from the license back, increasing to 7% following the issuance of at least one of the patents.
The company said the closing of the Assignment remains subject to a number of conditions, including the approval of regulators and shareholders.
It cautioned that there can be no assurance that it will be completed as proposed or at all.
The company's shares traded 15% higher at C$0.04 by noon in Toronto.
Contact the author at stephen.gunnion@proactiveinvestors.com