Following up on its press announcement on June 14th, 2022, Lithium Ionic Corp has announced that it has successfully acquired two strategic lithium mining licenses in Minas Gerais, Brazil.
Image Credit: Shutterstock.com/Steve Morfi
The two large Licenses are situated about 3 km to the northwest of the CBL lithium mining operation and about 2 km to the west of the enormous Xuxa lithium deposit of Sigma Lithium.
Previously Released Highlights from Lithium Ionic Drilling at Galvani Licenses
- Drill intercept of 1.27% Li2O over 10.77 m, including 1.72% Li2O over 2 m and 1.70% Li2O over 3.53 m.
- Drill intercept of 1.17% Li2O over 42.05 m, including 1.95% Li2O over 11.72 m.
- Drill intercept of 1.94% Li2O over 19.78 m, including 2.33% Li2O over 7.35 m.
- Drill intercept of 1.57% Li2O over 24.93 m, including 2.10% Li2O over 7.45 m.
The Galvani Property, specifically the Outro Lado showing, have shown the kinds of grades and widths we feel could potentially lead Lithium Ionic to a significant resource. The Galvani Property is an excellent addition to our land holdings in this prolific lithium belt.
Blake Hylands, Chief Executive Officer, Lithium Ionic Corp.
Lithium Ionic has made an aggregate cash payment of USD 3,310,000 to Galvani to complete the transaction following the terms of the asset purchase agreement dated June 13th, 2022, as amended, between the Company, MGLIT Empreendimentos Ltda., the company’s completely-owned subsidiary, and Galvani Nordeste Mineracao Ltda.
The company shall, at Galvani’s discretion, (i) issue the number of Lithium Ionic shares equal to USD 2 million calculated using the 7-day VWAP of the Lithium Ionic shares on the TSX Venture Exchange ending on the effective date of the technical report documenting a minimum inferred mineral resource estimate of 5Mt with a Li2O content above 1.3% during the 18 months following the closing of the transaction, or (ii) upon the effective date of the technical report supporting such mineral resource estimate, pay Galvani USD 2 million in cash.
The company did not pay any finder fees in connection with the transaction as it was conducted at arm’s length. TSX Venture has approved the transaction’s closure.