Lithium Ionic raises Salinas ownership in Brazil

Lithium Ionic (TSXV: LTH; US-OTC: LTHCF) is buying the remaining 15% of the Salinas properties in Brazil it doesn’t already own.

To finalize the acquisition, Lithium Ionic will pay the Brazilian Real equivalent of US$2 million by June 7, US$1 million by April 4, 2025, and issue 2.5 million shares by June 18, the company said in a release on Thursday.

The Salinas properties, located 100 km north of the Itinga group in Minas Gerais state, will expand Lithium Ionic’s control to 141.82 sq. km within the so-called Lithium Valley. The company increased its stake in Salinas to 85% by October. In April, it reported a measured and indicated resource estimate of 5.9 million tonnes grading 0.97% lithium oxide for 158,678 tonnes of lithium carbonate-equivalent.

“Securing 100% ownership of these properties is a significant milestone,” CEO Blake Hylands said in a statement this week. A preliminary economic assessment for Salinas is expected in the second half of the year.

Since its launch in May 2022, Lithium Ionic’s portfolio has expanded more than tenfold, with the company evaluating and consolidating lithium properties in the area.

The company’s total global mineral resources amount to 60.1 million tonnes spread across the Bandeira, Salinas and Outro Lado deposits for 1.9 million tonnes of lithium carbonate-equivalent, contributing to one of the region’s largest lithium resource portfolios.

Earlier this week, Lithium Ionic released a feasibility study on the Bandeira project, attaching an after-tax net present value (at an 8% discount rate) of US$1.3 billion, a post-tax internal rate of return of 40% and an initial capex of US$266 million to the project.

Company shares ended the week down 8% at 80¢ per share in Toronto after touching 62¢ and $2.74 over the past 12 months. It has a market capitalization of $110.6 million.