Lithium Ionic (TSX-V:LTH) has completed the sale of its Salinas lithium properties in Minas Gerais, Brazil, to PLS Brasil Mineração for US$37.5 million ($52.34 million).
The transaction includes the Baixa Grande lithium resource, located in the northern section of Brazil’s Eastern Pegmatite Province.
Under the terms of the deal, Lithium Ionic receives US$30 million cash at closing, with an additional US$7.5 million deferred consideration payable by the earlier of a positive final investment decision for PLS’ Colina Project or 31 December 2029.
PLS Brasil Mineração operates as a wholly owned subsidiary of PLS Group (ASX:PLS).
Lithium Ionic retains a 2% royalty on future spodumene sales via its wholly owned subsidiary Neolit Minerals Participações.
CEO Blake Hylands says the completion of the transaction ‘crystallises’ significant value from Salinas while strengthening Lithium Ionic’s balance sheet.
“In just over three years, our team advanced Salinas from an early-stage exploration opportunity to a monetised asset, while retaining shareholder exposure to future production through the royalty,” Hylands says.
The transaction allows Lithium Ionic to shift focus towards a construction decision at its primary development asset, the flagship Bandeira Lithium Project, located within Minas Gerais’ hard-rock lithium district.
Lithium Ionic is a developer focused on advancing the Bandeira Lithium Project in Brazil.
Write to Paula Fabe at Mining.com.au
Images: Lithium Ionic
