TORONTO, Dec. 07, 2022 (GLOBE NEWSWIRE) — Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF) (“
” or the “
”) is pleased to announce that it has entered into a binding asset purchase agreement (the “Agreement”) with Mineraçao Borges Ltda. (“Borges”) and MGLIT Impediment’s Ltda., the Company’s wholly-owned subsidiary, pursuant to which the Company shall acquire from Borges a 100% ownership interest in three mining claims (the “Claims”) covering a total of 1,527 hectares in Minas Gerais, Brazil (the “Transaction”).
The three Claims to be acquired cover a total of 1,527 hectares and are located along trend with the known lithium deposits in the Itinga Pegmatite Field, including lithium producer CBL’s deposit, as well as Sigma Lithium’s Xuxa and Barreiro deposits. Several pegmatite occurrences have already been identified and will be immediately investigated by systematic exploration aiming at the definition of potential spodumene mineral resources.
According to Blake Hylands, P. Geo. CEO of Lithium Ionic, “The Borges claims will significantly add to our land holdings in this highly sought-after lithium district. We look forward to carrying out exploration on these prospective properties in the coming months.”
Pursuant to the terms of the Agreement and in order to complete the Transaction, Lithium Ionic shall pay to Borges:
- R$500,000 (equivalent to approx. C$130,400) upon the execution of the conveyance documents transferring the Claims to MGLIT (the “Closing Date”); and
R$15,000,000 (equivalent to approx. C$3.9 million) upon the Company producing an independent NI 43-101 compliant mineral resource estimate on the Claims of a minimum of 2 million tons with a Li
O content over 1.30% within 18 months of the Closing Date.
The Transaction is an arm’s length transaction for the purposes of the policies of the TSX Venture Exchange (“TSXV”) and qualifies as an “Exempt Transaction” under TSXV Policy 5.3. Lithium Ionic is not paying any finder fees in connection with the Transaction.
Figure 1: Lithium Ionic Claims and Borges Claims to be Acquired
About Lithium Ionic Corp.
Lithium Ionic is a Canadian-based lithium-focused mining company with properties covering ~2,000 hectares located in the prolific Aracuai lithium province in Minas Gerais State, Brazil, which boasts excellent infrastructure, including highways, access to hydroelectrical grid power, water, and nearby commercial ports. Its Itinga and Galvani claims are located in the same district as the lithium-producing CBL mine and development-stage Sigma Lithium Corp.’s large Barreiro and Xuxa lithium deposits.
The technical information in this news release has been prepared by Carlos Costa, Vice President Exploration of Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic, and both are “qualified persons” as defined in NI 43-101.
For more information please contact:
Lithium Ionic Corp.
Blake Hylands, P.Geo.
Chief Executive Officer
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 Claims, the conveyances of the Claims, the ability to produce an NI 43-101 compliant mineral resource estimate, the mineralization and development of the Itinga Project and the Claims and other mining projects and prospects thereof; the Transaction and the Company’s ability to close the Transaction. 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.
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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