** Shares of Arizona Lithium up 10.5% to A$0.021, on track for their best day since July 3, if gains hold
** The lithium explorer says pad 1 at the Prairie Lithium Project, Canada, has been conditionally approved for an investment incentive of up to A$21.6 million ($14.55 million)
** Says investment incentive approved under the Saskatchewan Government's Oil & Gas Processing Investment Incentive Program (OGPII)
** Adds, OGPII will be a crucial component of co's future funding and development as it advances the development of the Prairie Lithium Project
** Stock has fallen 38.71% this year, as of last close
($1 = 1.4846 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru)
((Sherin.Sunny@thomsonreuters.com))
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