en.Wedoany.com Reported - On August 12, Lithium Ionic, a Canadian lithium developer, announced that its wholly-owned subsidiaries Salit Mineração, Neolit Minerals Participações, and related parties have signed a definitive agreement with PLS Brasil Mineração, a wholly-owned subsidiary of the PLS Group, to sell the Salinas lithium assets located in the "Lithium Valley" of Minas Gerais, Brazil. The transaction includes 10 mineral rights and certain related assets, including the Baixa Grande lithium resource.
Under the agreement, the total cash consideration is $37.5 million. Of this amount, $30 million will be paid at closing, with the remaining $7.5 million payable upon the earlier of a positive final investment decision for PLS's Colina project or December 31, 2029.
In addition to the cash consideration, Lithium Ionic will retain a 2% royalty interest through Neolit. This interest is calculated based on future spodumene sales revenue from the mineral rights being sold, on a free-on-board basis and net of allowable deductions under the agreement. As a result, even after the asset sale is completed, Lithium Ionic will continue to share in the potential upside from Salinas' future development and lithium price movements.
The Baixa Grande deposit is located near PLS's Colina lithium project. PLS plans to evaluate the feasibility of integrating Baixa Grande into the unified development of the Colina project to further consolidate local resources. PLS is one of the world's major hard-rock lithium producers, with core assets including the Pilgangoora lithium mine in Australia, and has entered Brazil's Lithium Valley through the acquisition of Latin Resources.
As of January 2025, the Baixa Grande project has measured and indicated resources of 6.52 million tonnes at an average grade of 1.11% lithium oxide, and inferred resources of 12.9 million tonnes at an average grade of 0.96%. The resource estimate is based on drilling data from 167 diamond drill holes totaling 35,734 meters, representing a 32% increase over the initial resource.
Lithium Ionic stated that the proceeds from the sale will be used to strengthen its balance sheet and support front-end engineering, procurement, and construction preparation work for its wholly-owned Bandeira lithium project. Through this transaction, the company intends to further concentrate capital and management resources to drive the transition of its business from multi-asset exploration to lithium project development centered on Bandeira.
The transaction remains subject to customary closing conditions, including third-party consents, and is expected to be completed within 10 business days after the signing of the agreement. Accordingly, the transaction is currently in the status of a signed definitive agreement and has not yet reached closing.
