PotlatchDeltic Executes Lithium/Bromine Lease Agreement in Arkansas
PotlatchDeltic (PCH) has signed a mineral lease agreement with TETRA Brine Leaseco , granting exclusive rights for brine exploration and production on approximately 900 surface acres in Lafayette County, Arkansas. The area is located within a high-grade region of the Smackover Formation, known for its lithium reserves.
The lease includes an initial five-year term for planning, engineering, and construction before potential production begins. The agreement provides for lease payments, future production payments for bromine, and royalty payments for profitable lithium extraction, with rates to be set by the Arkansas Oil and Gas Commission.
The company estimates having 5,000-7,000 acres with lithium-bearing opportunities in the high-grade Smackover Formation area, where significant lithium-related investments have been announced. PotlatchDeltic is currently in lease discussions with other parties.
PotlatchDeltic (PCH) ha firmato un accordo di affitto minerario con TETRA Brine Leaseco, concedendo diritti esclusivi per l'esplorazione e la produzione di salamoia su circa 900 acri di superficie nella contea di Lafayette, Arkansas. L'area si trova all'interno di una regione ad alta qualità della Formazione Smackover, nota per le sue riserve di litio.
L'affitto include un termine iniziale di cinque anni per la pianificazione, ingegnerizzazione e costruzione prima che inizi la potenziale produzione. L'accordo prevede pagamenti per l'affitto, pagamenti futuri per la produzione di bromo e pagamenti di royalties per l'estrazione redditizia di litio, con rate che saranno stabilite dalla Commissione per il Petrolio e il Gas dell'Arkansas.
L'azienda stima di avere 5.000-7.000 acri con opportunità contenenti litio nella zona ad alta qualità della Formazione Smackover, dove sono stati annunciati significativi investimenti legati al litio. PotlatchDeltic è attualmente in trattative per affitti con altre parti.
PotlatchDeltic (PCH) ha firmado un acuerdo de arrendamiento mineral con TETRA Brine Leaseco, otorgando derechos exclusivos para la exploración y producción de salmuera en aproximadamente 900 acres en el condado de Lafayette, Arkansas. El área se encuentra dentro de una región de alta calidad de la Formación Smackover, conocida por sus reservas de litio.
El arrendamiento incluye un plazo inicial de cinco años para la planificación, ingeniería y construcción antes de que comience la posible producción. El acuerdo contempla pagos de arrendamiento, futuros pagos por la producción de bromo y pagos de regalías por la extracción rentable de litio, con tarifas que serán establecidas por la Comisión de Petróleo y Gas de Arkansas.
La empresa estima tener 5,000-7,000 acres con oportunidades de litio en el área de alta calidad de la Formación Smackover, donde se han anunciado inversiones significativas relacionadas con el litio. PotlatchDeltic está actualmente en negociaciones de arrendamiento con otras partes.
PotlatchDeltic (PCH)는 TETRA Brine Leaseco와 미네랄 임대 계약을 체결하여 아칸소주 라팰렛 카운티의 약 900 에이커에서 브라인 탐사 및 생산에 대한 독점 권리를 부여했습니다. 이 지역은 리튬 매장량으로 유명한 스맥오버 포메이션의 고급 지역 내에 위치하고 있습니다.
임대 계약에는 잠재적 생산이 시작되기 전에 계획, 엔지니어링 및 건설을 위한 초기 5년 기간이 포함됩니다. 이 계약은 임대료, 브롬 생산에 대한 미래 지불 및 수익성 있는 리튬 추출에 대한 로열티 지불을 포함하며, 요금은 아칸소주 석유 및 가스 위원회에 의해 설정됩니다.
회사는 리튬 존재 가능성이 있는 5,000-7,000 에이커의 고급 스맥오버 포메이션 지역을 보유하고 있을 것으로 추정하고 있으며, 이 지역에서는 리튬 관련 상당한 투자가 발표되었습니다. PotlatchDeltic는 현재 다른 당사자들과 임대 협상 중입니다.
PotlatchDeltic (PCH) a signé un accord de bail minier avec TETRA Brine Leaseco, accordant des droits exclusifs pour l'exploration et la production de saumure sur environ 900 acres de surface dans le comté de Lafayette, Arkansas. La zone est située dans une région de haute qualité de la Formation Smackover, connue pour ses réserves de lithium.
Le bail inclut une durée initiale de cinq ans pour la planification, l'ingénierie et la construction avant que la production potentielle ne commence. L'accord prévoit des paiements de bail, des paiements de production futurs pour le brome, et des paiements de redevances pour l'extraction rentable de lithium, les taux étant fixés par la Commission du pétrole et du gaz de l'Arkansas.
La société estime avoir 5 000 à 7 000 acres présentant des opportunités lithium dans la région de haute qualité de la Formation Smackover, où des investissements significatifs liés au lithium ont été annoncés. PotlatchDeltic est actuellement en négociations de bail avec d'autres parties.
PotlatchDeltic (PCH) hat einen mineralischen Pachtvertrag mit TETRA Brine Leaseco unterzeichnet, der exklusive Rechte für die Erkundung und Produktion von Sole auf etwa 900 Acres in Lafayette County, Arkansas gewährt. Das Gebiet liegt in einer hochwertigen Region der Smackover-Formation, die für ihre Lithiumvorkommen bekannt ist.
Der Pachtvertrag umfasst eine anfängliche Laufzeit von fünf Jahren für Planung, Engineering und Bau, bevor die potenzielle Produktion beginnt. Die Vereinbarung sieht Pachtzahlungen, zukünftige Produktionszahlungen für Brom und Lizenzgebühren für profitable Lithium-Extraktion vor, wobei die Sätze von der Arkansas Oil and Gas Commission festgelegt werden.
Das Unternehmen schätzt, dass es 5.000-7.000 Acres mit lithiumhaltigen Gelegenheiten in der hochwertigen Smackover-Formation hat, wo bedeutende lithiumbezogene Investitionen angekündigt wurden. PotlatchDeltic befindet sich derzeit in Pachtverhandlungen mit anderen Parteien.
- Secured lease agreement for lithium and bromine exploration on 900 acres
- Multiple revenue streams: lease payments, production payments (bromine), and royalties (lithium)
- Additional 5,000-7,000 acres available for potential lithium-bearing opportunities
- Located in high-grade area with announced major lithium investments
- Five-year delay before potential production begins
- Production and profitability uncertain as project is in early exploration phase
Insights
The execution of this mineral lease agreement marks a strategic pivot for PotlatchDeltic, traditionally known as a timber REIT, into the high-demand lithium sector. The deal structure is particularly noteworthy for several reasons:
The 900-acre initial lease serves as a proof-of-concept for PCH's broader 5,000-7,000 acre lithium-bearing portfolio in the Smackover Formation. This region has attracted significant attention due to its rich lithium concentrations, with multiple companies announcing substantial investments. The dual revenue structure - combining lease payments, bromine production payments and lithium royalties - creates a multi-stream income potential that could materially impact PCH's future earnings.
The five-year planning and construction period before production indicates a methodical approach to resource development, allowing time for optimal extraction strategies while providing immediate lease payment benefits. This timeline aligns well with projected lithium demand growth, as global EV adoption and energy storage needs continue to accelerate.
The strategic value extends beyond the initial lease. PCH's confirmation of ongoing discussions with other parties for additional acreage suggests a broader monetization strategy for their mineral rights. The Smackover Formation's established infrastructure and existing bromine operations provide cost advantages for lithium extraction compared to greenfield projects.
For investors, this represents a significant value-creation opportunity beyond PCH's traditional timber operations. The company is effectively monetizing previously undervalued assets while maintaining ownership of the land. The structured royalty arrangement tied to the Arkansas Oil and Gas Commission rates provides a framework for fair market value capture as lithium prices evolve.
“We view the Lease with TETRA as a great first step in demonstrating the lithium potential from our brine deposits,” said Eric Cremers, President and Chief Executive Officer. “We estimate we have 5,000 – 7,000 acres with lithium-bearing opportunities that are located within the higher-grade area in the Smackover Formation, where billions in future lithium-related investments have been announced. Accordingly, we are currently in lease discussions with other parties. We believe we are well-positioned to drive long-term value for our shareholders through all of our natural climate solution opportunities,” stated Mr. Cremers.
About PotlatchDeltic
PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) with ownership of 2.1 million acres of timberlands in
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the duration of the lease, the successful production of brine, the potential profitable extraction of lithium, and the future royalty rate to be set by the Arkansas Oil and Gas Commission. Words such as “anticipates,” “future,” “long-term,” “potential,” and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements because they discuss the future expectations or state other “forward-looking” information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic’s control including accuracy of mineral exploration activity, reserves or minerals, regulatory or government requirements, approvals, or other actions, fluctuations in the market for lithium, and other factors. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250205690748/en/
(Investors)
Wayne Wasechek
509-835-1521
(Media)
Anna Torma
509-835-1558
Source: PotlatchDeltic Corporation
FAQ
What is the size of PotlatchDeltic's (PCH) new lithium lease agreement in Arkansas?
How long is the initial planning phase for PCH's lithium project with TETRA?
What is the total potential lithium-bearing acreage owned by PotlatchDeltic (PCH)?
What types of payments will PCH receive from the TETRA lithium lease agreement?
Is PotlatchDeltic (PCH) planning additional lithium lease agreements?
