Lithium Ionic Completes US$20 Million Royalty Agreement with Appian Capital
19 July 2024 - 2:09AM
Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) (“Lithium
Ionic” or the “Company”) is pleased to announce the successful
completion of the previously announced royalty agreement with
Appian Capital Advisory LLP (“Appian”).
Lithium Ionic Bandeira Corp. (the “Grantor”) has
executed a definitive royalty agreement (the “Royalty Agreement”)
with ANRF LI (JSY) Ltd., an affiliate of Appian, granting a 2.25%
gross revenue royalty in exchange for upfront cash consideration of
US$20,000,000. This agreement aligns with the terms outlined in the
Company’s news releases dated May 30, 2024, and June 28, 2024.
Appian is an investment advisor to long-term, value-focused private
capital funds that invest exclusively in mining and mining-related
companies.
Lithium Ionic intends to use the proceeds from
the Royalty to advance the development and construction of its
world-class Bandeira Lithium Project (“Bandeira” or the “Project”),
located within the Lithium Valley in Minas Gerais State, Brazil.
Additionally, funds will be allocated for general corporate
purposes and working capital requirements. The Lithium Valley is
renowned for its significant concentration of lithium-bearing
pegmatites and has become a globally significant lithium production
center.
Key Terms of the Royalty
Agreement
- A 2.25%
Life-of-Mine gross revenue royalty on the Bandeira Project.
- Upfront purchase
price of US$20,000,000 payable to the Grantor.
- An option for
the Company to fully buy-back the Royalty within the first five
years for a fee of US$67,500,000.
- The Royalty
obligations will be secured by charges and share pledges over
substantially all current and future assets relating to the
Project.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company
exploring and developing its lithium properties in Brazil. Its
Itinga group of properties, which hosts its flagship Bandeira
Lithium Project, as well as its Salinas group pf properties cover
~14,000 hectares in the northeastern part of Minas Gerais state, a
mining-friendly jurisdiction that is quickly emerging as a
world-class hard-rock lithium district. The Bandeira Project is
situated in the same region as CBL’s Cachoeira lithium mine, which
has produced lithium for +30 years, as well as Sigma Lithium
Corp.’s Grota do Cirilo project, which hosts the largest hard-rock
lithium deposit in the Americas.
About Appian Capital Advisory
LLP
Appian Capital Advisory LLP is the investment
advisor to long-term value-focused private capital funds that
invest solely in mining and mining-related companies. Appian is a
leading investment advisor in the metals and mining industry, with
global experience across South America, North America, Australia,
and Africa and a successful track record of supporting companies to
achieve their development targets. Appian has a global team of over
75 experienced professionals with presences in London, New York,
Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai,
Johannesburg, and Perth.
On behalf of the Board of Directors of
Lithium Ionic Corp.
Blake HylandsChief Executive Officer,
Director
Investor and Media Inquiries:+1
647.316.2500info@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 Company’s mineral properties including
Bandeira and Salinas, the Company’s ability to produce a NI 43-101
compliant Feasibility study and the timing thereof, the Company’s
ability to obtain the requisite licences and permits, the economic
viability of the Bandeira Project, the Company’s ability to obtain
adequate financing, the mineralization and development of the
Company’s mineral properties, the Company’s exploration program and
other mining projects and prospects thereof and the Company’s
future plans. 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.
[Information and links in this press
release relating to other mineral resource companies are from their
sources believed to be reliable, but that have not been
independently verified by the Company]
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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