Lithium Ionic Acquires Ownership Interest in Strategic Mining Claims in Brazil
25 January 2023 - 11:00PM
Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FRA: H3N)
(“
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.”
Figure 1 – Lithium Ionic Claims and Vale
Litio Lithium Mining Claims
View Figure 1
here:https://www.globenewswire.com/NewsRoom/AttachmentNg/da993568-9298-46e4-a43e-1df2efd49d1e
The Transaction
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.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian-based
lithium-focused mining company with properties covering ~3,600
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
construction-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 Vale Claims, the ability to produce an NI
43-101 compliant mineral resource estimate, the mineralization and
development of the Itinga Project and the Vale Claims and other
mining projects and prospects thereof; the Vale Claims transaction
and the Company’s ability to acquire 100% of Vale Litio. 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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