Lithium Ionic Announces Binding Term Sheet for US$20 Million Royalty Financing with Appian
Lithium Ionic Announces Binding Term Sheet for US$20 Million Royalty Financing
with Appian
TORONTO, ON, May 30, 2024 - Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N)
(“Lithium Ionic” or the “Company”), is pleased to announce that it has executed a binding term
sheet (the “Term Sheet”) with Appian Capital Advisory LLP (“Appian”) to sell a 2. 25% gross
revenue royalty on its Bandeira Deposit in exchange for an upfront cash consideration of
US$20,000,000 (the “Royalty”). Appian is an investment advisor to long- term, value-focused
private capital funds that invest solely in mining and mining-related companies.
Lithium Ionic intends to use the proceeds of the Royalty to further advance the development and
construction of its world-class Bandeira Lithium Project (“Bandeira” or the “Project”), located within
the Lithium V alley in Minas Gerais State, Brazil. The Lithium Valley is a unique geological belt
that hosts a significant concentration of lithium-bearing pegmatites and has emerged as a globally
significant lithium production center. On May 29, 2024, the Company announced Feasibility Study
results for Bandeira supporting a 14 -year, low-cost mining operation producing 178,000tpa of
high-quality spodumene concentrate (5.5% Li2O), resulting in a post -tax NPV8 of US$1.3B and
an IRR of 40%.
Terms of the Royalty Term Sheet
The closing and funding of the Royalty are subject to the execution of a definitive agreement (the
"Definitive Agreement") between the Company and Appian. Certain key terms that have been
agreed upon include:
• A 2.25% Life of Mine gross revenue royalty on the Bandeira Project.
• A purchase price of US$20,000,000 payable to the Company upon closing.
• An option for the Company to fully buy-back the Royalty within the first five years for a fee
of US$67,500,000.
• Funding is subject to customary conditions precedent , including the finalization and
execution of documentation and the provision of legal opinions.
BMO Capital Markets is acting as financial advisor to Lithium Ionic. Bennett Jones LLP is acting
as Lithium Ionic’s legal advisor.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in
Brazil. Its Itinga and Salinas group of properties cover 14,182 hectares in the northeastern part of
Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world- class hard-
rock lithium district. Its Feasibility-stage Bandeira Project is situated in the same region as CBL’s
Cachoeira lithium mine, which has produced lithium for +30 years, as well as Sigma Lithium
Corp.’s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to long-term value-focused private capital
funds that invest solely in mining and mining-related companies. Appian is a leading investment
advisor in the metals and mining industry, with global experience across South America, North
America, Australia and Africa and a successful track record of supporting companies to achieve
their development targets, with a global operating portfolio overseeing nearly 7,000 employees.
Appian has a global team of over 75 experienced professionals with presences in London, New
York, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg and Perth.
Qualified Persons
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, who are both
“qualified persons” as defined in NI 43- 101. Mr. Costa and Mr. Hylands have both read and
approved the content in this news release.
On behalf of the Board of Directors of Lithium Ionic Corp.
Blake Hylands
Chief Executive Officer, Director
Investor and Media Inquiries:
+1 647.316.2500
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 ac hievements 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 informati on. The forward -looking
statements and information in this press release include information relating to the prospectivity
of the Company’s mineral properties including Bandeira and Salinas, the Company’s ability to
produce a NI 43-101 compliant Feasibility study and the timing thereof, the Company’s ability to
obtain the requisite licences and permits, the economic viability of the Bandeira Project, the
Company’s ability to obtain adequate financing (including the ability to execute a Definitive
Agreement and to complete and close the proposed Royalty transaction), the mineralization and
development of the Company’s mineral properties, the Company’s exploration program and other
mining projects and prospects thereof and the Company’s future plans. 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 di fferent 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.
Information and links in this press release relating to other mineral resource companies
are from their sources believed to be reliable, but that have not been independently verified
by the Company.
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.