Lithium Ionic Enters into Agreement to Acquire Strategic Mining Claims in Brazil
07 December 2022 - 11:00PM
Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF) (“
Lithium
Ionic” or the “
Company”) is pleased to
announce that it has entered into a binding asset purchase
agreement (the “Agreement”) with Mineraçao Borges Ltda. (“Borges”)
and MGLIT Impediment’s Ltda., the Company’s wholly-owned
subsidiary, pursuant to which the Company shall acquire from Borges
a 100% ownership interest in three mining claims (the “Claims”)
covering a total of 1,527 hectares in Minas Gerais, Brazil (the
“Transaction”).
The three Claims to be acquired cover a total of
1,527 hectares and are located along trend with the known lithium
deposits in the Itinga Pegmatite Field, including lithium producer
CBL’s deposit, as well as Sigma Lithium’s Xuxa and Barreiro
deposits. Several pegmatite occurrences have already been
identified and will be immediately investigated by systematic
exploration aiming at the definition of potential spodumene mineral
resources.
According to Blake Hylands, P. Geo. CEO of
Lithium Ionic, “The Borges claims will significantly add to our
land holdings in this highly sought-after lithium district. We look
forward to carrying out exploration on these prospective properties
in the coming months.”
The Transaction
Pursuant to the terms of the Agreement and in
order to complete the Transaction, Lithium Ionic shall pay to
Borges:
- R$500,000 (equivalent to approx.
C$130,400) upon the execution of the conveyance documents
transferring the Claims to MGLIT (the “Closing Date”); and
- R$15,000,000 (equivalent to approx.
C$3.9 million) upon the Company producing an independent NI 43-101
compliant mineral resource estimate on the Claims of a minimum of 2
million tons with a Li2O content over 1.30% within 18 months of the
Closing Date.
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.
Figure 1: Lithium Ionic Claims and
Borges Claims to be
Acquiredhttps://www.globenewswire.com/NewsRoom/AttachmentNg/5c295ad7-ca8d-44b2-957e-ee49ad235da7
About Lithium Ionic Corp.
Lithium Ionic is a Canadian-based
lithium-focused mining company with properties covering ~2,000
hectares located in the prolific Aracuai lithium province in Minas
Gerais State, Brazil, which boasts excellent infrastructure,
including highways, access to hydroelectrical grid power, water,
and nearby commercial ports. Its Itinga and Galvani claims are
located in the same district as the lithium-producing CBL mine and
development-stage Sigma Lithium Corp.’s large Barreiro and Xuxa
lithium deposits.
Qualified Persons
The technical information in this news release
has been prepared by Carlos Costa, Vice President Exploration of
Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic,
and both are “qualified persons” as defined in NI 43-101.
For more information please
contact:
Lithium Ionic Corp. Blake
Hylands, P.Geo.Chief Executive OfficerEmail:
bhylands@lithiumionic.com
Cautionary Note Regarding
Forward-Looking Statements
This press release contains statements that
constitute “forward-statements.” Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause the Company’s actual results, performance or
achievements, or developments to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Although the Company
believes, in light of the experience of its officers and directors,
current conditions and expected future developments and other
factors that have been considered appropriate that the expectations
reflected in this forward-looking information are reasonable, undue
reliance should not be placed on them because the Company can give
no assurance that they will prove to be correct. When used in this
press release, the words “estimate”, “project”, “belief”,
“anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these words or such variations thereon
or comparable terminology are intended to identify forward-looking
statements and information. The forward-looking statements and
information in this press release include information relating to
the prospectivity of the Claims, the conveyances of the Claims, the
ability to produce an NI 43-101 compliant mineral resource
estimate, the mineralization and development of the Itinga Project
and the Claims and other mining projects and prospects thereof; the
Transaction and the Company’s ability to close the Transaction.
Such statements and information reflect the current view of the
Company. Risks and uncertainties that may cause actual results to
differ materially from those contemplated in those forward-looking
statements and information. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. The forward-looking
information contained in this news release represents the
expectations of the Company as of the date of this news release
and, accordingly, is subject to change after such date. Readers
should not place undue importance on forward-looking information
and should not rely upon this information as of any other date. The
Company undertakes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions, or other factors, should change.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
press release.
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