The company and its engineering partner PurLucid Treatment Solutions have developed a rapid lithium extraction technology, which enhances the quality of recovery across a complex range of brines compared to solar evaporation.
The tech can be used for petrolithium (oil and gas wastewater), natural brine, and other brine sources.
MGX and Eureka Resources have now signed a letter of intent to form an exclusive joint venture to recover lithium from water produced at non-conventional oil and gas sites across the Marcellus and Utica shale formations, Vancouver-based MGX said in a statement Tuesday.
This area accounts for around 40% of all natural gas produced in the United States, and also generates a large amount of so-called 'produced water'.
Eureka already uses advanced treatment technology to convert 10,000 barrels per day of this water into valuable co-products, including fresh water, high-purity sodium chloride and calcium chloride. Through this venture, Eureka will begin extracting lithium too.
''We are extremely pleased to partner with Eureka,'' said MGX president and CEO Jared Lazerson.
''The joint venture will look not only to install an initial rapid recovery system immediately, but views this as the first step in executing the strategic vision of Petrolithium. The extraction of lithium from oil and gas well sources is a broad paradigm shift for the energy sector. There may be a lot of lithium in the eastern U.S. Our clean technology unlocks this potential. Our joint venture plans to install multiple lithium rapid recovery systems at wastewater treatment facilities across the Marcellus and Utica shale formations.''
Dan Ertel, president and CEO of Eureka Resources, added: "Through this joint venture, we can help meet the growing need for lithium while simultaneously making a positive environmental impact."
Shares advanced in Toronto over 11% to $0.395 in Toronto. In New york, they gained 7.4% to US$0.29.
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