Lithium Ionic Completes US$20 Million Royalty Agreement with Appian Capital
Lithium Ionic Completes US$20 Million Royalty Agreement with Appian Capital
TORONTO, ON, July 18, 2024 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N)
(“Lithium Ionic” or the “Company”) is pleased to announce the successful completion of the
previously announced royalty agreement with Appian Capital Advisory LLP (“Appian”).
Lithium Ionic Bandeira Corp. (the “Grantor”) has executed a definitive royalty agreement (the
“Royalty Agreement”) with ANRF LI (JSY) Ltd., an affiliate of Appian, granting a 2.25% gross
revenue royalty in exchange for upfront cash consideration of US$20,000,000. This agreement
aligns with the terms outlined in the Company’s news releases dated May 30, 2024, and June 28,
2024. Appian is an investment advisor to long-term, value-focused private capital funds that invest
exclusively in mining and mining-related companies.
Lithium Ionic intends to use the proceeds from the Royalty to advance the development and
construction of its world-class Bandeira Lithium Project (“Bandeira” or the “Project”), located within
the Lithium Valley in Minas Gerais State, Brazil. Additionally, funds will be allocated for general
corporate purposes and working capital requirements. The Lithium Valley is renowned for its
significant concentration of lithium -bearing pegmatites and has become a globally significant
lithium production center.
Key Terms of the Royalty Agreement
A 2.25% Life-of-Mine gross revenue royalty on the Bandeira Project.
Upfront purchase price of US$20,000,000 payable to the Grantor.
An option for the Company to fully buy-back the Royalty within the first five years for a fee
of US$67,500,000.
The Royalty obligations will be secured by charges and share pledges over substantially
all current and future assets relating to the Project.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in
Brazil. Its Itinga group of properties, which hosts its flagship Bandeira Lithium Project, as well as
its Salinas group pf properties cover ~14,000 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. The 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. 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.
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, 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 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.
[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]
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release.