Lithium Ionic Corp. (“Lithium Ionic” or the “Company”) announces that its Brazilian-based wholly owned subsidiary, MGLIT Empreendimentos Ltda. (“MGLIT”), has entered into a binding share purchase agreement (the “Agreement”) with Exotic Mineração Ltda. (“Exotic”) pursuant to which MGLIT has the option to acquire up to a 100% equity interest in Vale Do Lítio Mineração Ltda. (“Vale Litio”). Vale Litio has a 100% beneficial ownership interest in three lithium mining claims in Minas Gerais, Brazil that cover a total of 3,140 hectares (the “Vale Claims”).
The first of three claims cover 1,738 hectares and is located adjacent to the recently acquired Galvani target. Spodumene-rich pegmatites have already been identified in old workings and outcrops at this property. The other two claims, covering 879 hectares and 523 hectares, are located in the northeastern portion of the prospective Araçuai-Itinga Pegmatite region (See Figure 1).
Blake Hylands, P. Geo., CEO of Lithium Ionic, commented, “We are very pleased with this agreement, which is in line with our strategy of acquiring and consolidating strategic lithium targets in this prospective lithium-producing region.”
Pursuant to the terms of the Agreement, Lithium Ionic has acquired an initial 2.78% equity ownership interest in Vale Litio by paying R$900,000.00 (approximately C$235,000) in cash to Exotic. Lithium Ionic may acquire the following ownership interests in Vale by making the following payments to Exotic:
- R$500,000 (approximately C$130,000) in cash to acquire an additional 1.54% equity ownership in Vale on or before February 20, 2023;
- R$500,000 (approximately C$130,000) in cash to acquire an additional 1.54% equity ownership in Vale on or before July 20, 2023;
- R$500,000 (approximately C$130,000) in cash to acquire an additional 1.54% equity ownership in Vale on or before February 20, 2024; and
- R$30,000,000 (approximately C$7,800,000) in cash to acquire the remaining 92.60% equity ownership in Vale on or before July 20, 2024.
If the Company establishes a NI 43-101 compliant mineral resource estimate on the Vale Claims of at least six million tons with an average content greater than 1.30% Li2O, Lithium Ionic shall pay Exotic a cash bonus of R10,000,000.00 (approximately C$2,630,000).
Lithium Ionic may terminate the Agreement at any time without incurring any additional financial penalties.
The transaction is an arm’s length transaction for the purposes of the policies of the TSX Venture Exchange (“TSXV”) and qualifies as an “Exempt Transaction” under TSXV Policy 5.3. Lithium Ionic is not paying any finder fees in connection with the transaction.