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 asset purchase agreement (the “Agreement”) with Clésio Alves Gonçalves Mineraçao E Comercio Ltda (“Clesio”) pursuant to which MGLIT has acquired a strategic mining claim covering 1,000 hectares (the “Clesio Claim”) in Minas Gerais state, Brazil.
With the acquisition of the Clesio claim, Lithium Ionic has increased its land position to approximately 7,700 hectares, a six-fold increase from the 1,300 hectares it launched with in May 2022. The Company’s land holdings are all located in the Jequitinhonha Valley, a prolific hard-rock lithium district in the state of Minas Gerais, Brazil.
Blake Hylands, P. Geo., CEO of Lithium Ionic, commented, “We continue to consolidate prospective lithium targets in the prolific Eastern Brazilian Pegmatite Province known for its large and high grade hard-rock lithium deposits. Our team believes there’s excellent potential to identify mineralized pegmatites on the Clesio claim, given it is on trend with nearby world-class lithium deposits - among these are Sigma Lithium’s Xuxa and Barreiro deposits, which form part of the largest hard-rock lithium deposits in the Americas, as well as CBL’s Cachoeira Mine, which has been producing lithium for 30 years.”
Pursuant to the terms of the Agreement, Lithium Ionic has paid R$500,000 (approximately C$130,000) in cash to Clesio to acquire the Clesio Claim.
If the Company establishes a NI 43-101 compliant mineral resource estimate on the Clesio Claim of at least two million tons with an average content greater than 1.30% Li2O within 30 months of acquiring the Clesio Claim, Lithium Ionic shall pay Clesio a cash bonus of USD$1 million.
If the Company establishes a NI 43-101 compliant mineral resource estimate on the Clesio Claim of at least five million tons with an average content greater than 1.30% Li2O within 48 months of acquiring the Clesio Claim, Lithium Ionic shall pay Clesio an additional cash bonus of USD$1 million.
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.