Australia-based Pantera Minerals has signed a $2m convertible note facility with Daytona Lithium to acquire a 35% interest in the Superbird lithium project located in Arkansas, US.

With the purchase of a 35% stake Superbird project, Pantera enters the Smackover Formation, one of the hottest brine formations in the US.

The Superbird project covers around 5,325 acres of leased lithium brine prospective ground in the Smackover Formation, a known high-grade brine formation in the Arkansas region.

Pantera said that the Smackover Formation is home to several lithium brine explorers and producers.

The Superbird project is located close to several lithium projects, such as the Exxon lithium brine project, Lanxess project, and South-West Arkansas project, among others.

Pantera CEO Matt Hansen said: “With Pantera’s 35% investment into Daytona Lithium, the Company enters one of the most significant and emerging brine plays in the USA. Daytona holds highly prospective lithium brine leases in the Smackover Play located in Arkansas, USA.

“Daytona’s project area directly abuts Exxon’s Smackover Lithium Brine Project, Standard Lithium’s Lanxess & South-West Arkansas Project and Albemarle Corporation’s Lithium-Bromine Brine Project.

“Exxon’s entrance into the region, marked by a reported > $100m acquisition of over 100,000 acres of private leases and their subsequent agreement with Tetra Technologies to develop a further 6,000 lithium-rich acres in Arkansas to produce 75,000-100,000 metric tons annually, equalling 15% of the world’s lithium production last year.”

Daytona is an Australia-based company, and together with its founding shareholder 2CP Resources, has experience in managing North American land acquisition programmes.

The company has compiled a unique database (IP) that contains both public and private data and data samples, which has identified several lithium brine-rich target areas in Arkansas.

Pantera has appointed an independent expert, Matrix Solutions, to complete a review of Daytona’s IP to ensure sufficient data is available for regional geological interpretations, reservoir, and basin architecture, and to refine volumetric assessment and calculations.

Hansen added: “The Smackover Play is fast becoming recognised as a leading play globally for lithium brine production with a long-established bromine brine extraction industry and 100 years of oil and gas well data available.

“We look forward to working with the Daytona team with the aim of increasing the leased area and generating a lithium exploration target in the short term and creating value by providing shareholders with exploration exposure to this exciting battery metals project.”