Reviewed by Lexie CornerJun 3 2024
Lithium Ionic Corp.’s subsidiary, Neolit Minerals Participações Ltda, has signed a binding agreement to acquire the remaining 15 % of select Salinas properties in the Curralinho Pegmatite Field of the lithium-rich Araçuaí Pegmatite District in Minas Gerais, Brazil. After the Agreement is completed, Lithium Ionic will hold 100 % of the Salinas group of properties.
Properties Location Map Image Credit: Lithium Ionic Corp.
The Company will make the following payments to the vendor as consideration for the Transaction:
- Cash payment of the Brazilian Real equivalent of US $2 million by June 7, 2024
- Cash payment of the Brazilian Real equivalent of US $1 million by April 4, 2025
- Issuance of 2.5 million shares of Lithium Ionic by June 18, 2024
The Itinga group of properties is located around 100 km north of the Salinas properties. The “Lithium Valley” is a distinctive geological zone that contains some of the world’s largest and highest-grade lithium-bearing pegmatites. The Company collectively owns 14,182 hectares inside this region.
In March 2023, the Company purchased the Salinas properties from Neolit, which at the time held a 40 % stake in the properties. Following the fulfillment of certain exploration obligations, the Company raised its ownership stake in the Salinas holdings to 85 % in October 2023. Lithium Ionic will own a 100 % stake in the Salinas group of properties upon the Agreement's conclusion.
A mineral resource estimate (MRE) of 14.76 million tonnes was released on April 4th, 2024, after seven months of drilling on one of the nine Salinas tenements, covering 662 hectares, between May and November 2023.
The estimate complies with NI 43-101 regulations. According to a news statement dated April 12, 2024, the Salinas lithium deposit accounts for over 25 % of the company’s entire global MRE of 60.1 Mt.
The MRE we have already established at Salinas represents a cornerstone asset in our portfolio of projects, and we strongly believe that our plans to explore adjacent properties could significantly scale our mineral resources. We are very pleased to have secured a path to 100 % ownership of these prospective properties.
Blake Hylands, Chief Executive Officer, Lithium Ionic Corp.
GE21 Consultoria Mineral Ltda, an independent Brazilian consultancy located in Belo Horizonte, Minas Gerais, is conducting a preliminary economic assessment for Salinas. The assessment is expected to be completed in the second half of 2024.