Lithium Ionic (TSX-V:LTH) has agreed to sell its Salinas lithium properties in Brazil to PLS Brasil Mineração for US$37.5 million ($53.2 million), while retaining a 2% royalty on future spodumene sales.
The sale comprises 10 mineral claims and associated assets, including the Baixa Grande lithium resource in Minas Gerais.
PLS Brasil is a wholly owned subsidiary of PLS Group (ASX:PLS), which owns the adjacent Colina Lithium Project.
Lithium Ionic will receive US$30 million at closing and a further US$7.5 million on the earlier of a positive final investment decision for Colina or 31 December 2029.
The transaction is expected to close within 10 business days, subject to customary conditions.
Under a separate agreement, Lithium Ionic will retain a royalty equal to 2% of proceeds from spodumene produced from the sold claims. It will be calculated on a free-on-board basis after certain allowable deductions.
CEO Blake Hylands says the sale provides non-dilutive funding while preserving exposure to Baixa Grande’s potential development.
“This transaction crystallizes that value for shareholders without dilution, at a constructive point in the lithium cycle, and the royalty keeps shareholders exposed to Baixa Grande’s potential future development under PLS,” Hylands says.
Lithium Ionic entered the Salinas district in March 2023 and completed a mineral resource estimate for Baixa Grande in December 2024.
PLS acquired Colina through its takeover of Latin Resources in early 2025. Bringing Baixa Grande and Colina under the same ownership, which Lithium Ionic says will allow PLS to assess whether or not the neighbouring deposits can be integrated.
Lithium Ionic says it plans to direct the sale proceeds towards early works, procurement, and construction-readiness activities at its wholly owned Bandeira Lithium Project in Minas Gerais as it advances towards a construction decision.
Write to France Pinzon at Mining.com.au
Images: Lithium Ionic
