Controlled Thermal Resources

Overview

Controlled Thermal Resources Ltd. (CTR) is a public unlisted lithium resource and renewable energy company, developing the Hell’s Kitchen lithium and power project in Imperial Valley, California. CTR has invested eight years into the development of an integrated lithium extraction and conversion facility with a geothermal power facility on its leasehold within the Salton Sea Geothermal Field (SSGF). CTR is focused on delivering sustainably produced, battery-grade lithium products and renewable baseload power to support California’s clean energy mandates and to ensure a secure and reliable lithium supply chain in the United States. The company has headquarters in both California and Brisbane, Australia.

Globally, attitudes toward energy-related resource extraction are evolving to better reflect climate change concerns and the demand for cleaner, “greener” products. Investors are increasingly looking at jurisdictions and resource projects that are aligned with environmental and socially responsible development.

Utilizing direct lithium extraction technology, Controlled Thermal Resources is developing a staged production path for battery-grade lithium carbonate and lithium hydroxide compounds, and other US designated critical minerals.

The integration of lithium extraction with renewable energy production provides further advantages to project economics and operating performance compared to stand-alone lithium facilities. In contrast to evaporation pond and open pit mining, direct lithium extraction is a closed-loop system that utilizes 100 percent renewable energy and steam for processing; takes hours, not months to produce high purity battery-grade lithium products; has a very small physical footprint and a near-zero carbon footprint; is not weather dependent; does not require off-shore processing, and operates 24 hours a day, 7 days a week.

Controlled Thermal Resources anticipates commencement of commercial production at Hell’s Kitchen in 2023. The production of geothermal power at Hell’s Kitchen provides CTR the ability to participate in California’s growing renewable energy market. In January 2020, CTR announced it had entered into a 25 year power purchase agreement (PPA) with Imperial Irrigation District (IID), the largest irrigation district in North America and the sixth-largest electrical utility in California.

With the assistance of its project engineering partner Hatch Ltd., Controlled Thermal Resources completed its Canadian National Instrument 43-101 (NI 43-101) Technical Report, and the accompanying Preliminary Economic Assessment( PEA). CTR has initiated a Prefeasibility Study (PFS) and commenced well pad construction in anticipation of drilling its first two geothermal wells.

CTR is seeking an equity investment of US$37 million to fund remaining project development activities up to the completion of financial close for construction of both commercial facilities.

The management team of Controlled Thermal Resources has significant project delivery experience in the mineral, chemical and renewable energy sectors, including more than a quarter-century of experience in the development and operations of large-scale geothermal energy projects in the Salton Sea region.

Controlled Thermal Resources’ Company Highlights

• California location offers jurisdictional security in a stable US economy.
• Staged production path, commencing with 20,000 tonnes lithium hydroxide per annum and 49.9MW of renewable power in 2023.
• Designed to scale according to market demands with a total resource capacity to produce ~300,000 tonnes per annum of lithium carbonate equivalent (LCE) products and ~1,100MW renewable power.
• Eco-friendly, closed-loop, direct lithium extraction operation powered by 100 percent renewable energy.
• Significant Environmental, Social and Governance (ESG) advantages over today’s primary sources of lithium production including,
  • small environmental footprint
  • onsite renewable energy
  • no off-shore processing
  • alignment with downstream customer sustainability mandates
• Support by federal, state, and local government agencies.
• CEO Rod Colwell appointed to the Lithium Valley Commission – A California Blue-Ribbon Commission established to investigate lithium recovery from Salton Sea geothermal brines.
• Power Purchase Agreement secured with IID.
• Advanced discussions with prospective lithium offtake parties.
• Located near established infrastructure such as rail, interstate highways, and industrial water.
• Proven management team with decades of experience in mineral, chemical and renewable energy industries, including geothermal development and operations in the Salton Sea region.