Lithium Ionic Initiates Engineering and Construction Management Services Contracts, Awarded to Hatch and Reta for Bandeira Project Development
Lithium Ionic Initiates Engineering and Construction Management Services Contracts,
Awarded to Hatch and Reta for Bandeira Project Development
TORONTO, ON, October 22, 2024 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE:
H3N) (“Lithium Ionic” or the “Company”) is pleased to announce the initiation of Engineering,
Procurement, and Construction Management (“EPCM”) services for its flagship Bandeira Lithium
Project (“Bandeira” or the “Project”) located in northeastern Minas Gerais State, Brazil. This
milestone marks the transition to the construction and development phase of the Project and is a
key step towards production. Advancing engineering and construction management services will
progress the Project along the targeted timeline in anti cipation of the upcoming approval of site
permits.
Key Highlights:
Hatch Ltd. has been awarded engineering and design services. Hatch is an internationally
recognized engineering firm with extensive global experience in several commodities and
a local presence in Brazil, including offices in Belo Horizonte , the capital city of Minas
Gerais state. Hatch’s involvement will bring world-class expertise and innovative solutions
to the Bandeira Project, ensuring a streamlined and efficient development process.
Reta Engenharia, a leading Brazilian construction management company, has been
selected to provide construction management services for the Bandeira Project. With
extensive experience in greenfield mining projects, R eta has supported both junior and
large-cap producers, making them ideally suited to drive efficient and effective project
outcomes. Their proven track record in managing greenfield projects, combined with their
deep regional knowledge, will be instrumental in advancing the Bandeira Project towards
production.
Growing the Owner’s Team: To support this transition to project development and
ensure a smooth transition into production, Lithium Ionic is expanding the technical
capabilities of its owner’s team, by bringing in experienced professionals to guide the
Bandeira Project through the construction and operational readiness phases.
Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “Our momentum towards production
is stronger than ever as we kick off the engineering and construction management phase with our
esteemed partners, Hatch and Reta. This significant milestone marks an important step towards
our goal of becoming one of Brazil’s next major lithium producers. On the permitting front, we are
now in the final stages at both the national and state levels, putting us firmly on track to deliver on
our commitment of building a sustainable and economic lithium mine that will contribute to the
region's growing significance in the global lithium supply chain.”
Permitting Process Advancing on Track, Key Milestones Approaching
The permitting process for the Bandeira Project is progressing efficiently at both the State and
Federal levels, with key approvals approaching. Currently, the review process is underway for the
granting of the Concomitant Environmental and Installation License (Licença Ambiental
Concomitante - LAC), which is part of a fast-track permitting process for critical minerals projects,
designed to expedite the timeline to construction. Following the LAC approval, the final steps for
full-scale production will include the granting of the Mining Concession and the Operating License
(Licença de Operação - LO), which is issued upon inspection of the completed site facilities.
Lithium Ionic remains on track to begin initial production at Bandeira in the second half of 2026.
Bandeira Lithium Project
The Bandeira property covers 157 hectares, or ~1% of the Company’s large ~17,000-hectare land
package in Brazil's prolific Lithium Valley, in Minas Gerais State. Bandeira currently accounts for
~70% of Lithium Ionic’s global lithium mineral resource estimate of 60.1Mt* (See press release
dated April 12, 2024).
In May 2024, a Feasibility Study for Bandeira highlighted a robust 14-year mine life, producing an
average of 178,000 tonnes of high- quality spodumene concentrate (5.5% Li ₂O) annually with a
post-tax NPV of US$1.3 billion and an IRR of 40% (see press release dated May 29, 2024)
Bandeira is s ituated in northeastern Minas Gerais State, a Tier 1 mining region with excellent
infrastructure, including low -cost, renewable hydroelectric power, access to water, excellent
transport infrastructure and access to foreign markets via nearby ports. Known as Brazil’s “Lithium
Valley,” this region hosts the largest lithium reserves in the country and has emerged as a globally
significant producer of high purity spodumene concentrate. Bandeira is located approximately
500m from CBL’s Cachoeira lithium mine and approximately 4km from Sigma Lithium’s Grota do
Cirilo Mine.
*See NI 43-101 compliant technical report related to the Bandeira Bandeira MRE titled “NI 43-101 Technical Report –
Mineral Resource Update on Bandeira Project, Araçuaí and Itinga, Minas Gerais State, Brazil” (effective date of March
5, 2024; QP: Leonardo Soares of GE21); See NI 43-101 compliant technical report related to the Salinas MRE titled
“Independent Technical Report on Mineral Resources Estimate” (effective date of January 4, 2024; QP: Leonardo
Soares, P.Geo., M.Sc., of GE21); and the NI 43-101 compliant technical reports related to the Outro Lado deposit titled
“Mineral Resource Estimate for Lithium Ionic, Itinga Project” (effective date of June 24, 2023; authored by Maxime
Dupéré, B. Sc., P.Geo. and Faisal Sayeed, B. Sc., P.Geo).
On behalf of the Board of Directors of Lithium Ionic Corp.
Blake Hylands
Chief Executive Officer, Director
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company advancing its lithium projects in Brazil, with near -
term production expected from its flagship Bandeira Project. Situated in the heart of the "Lithium
Valley" in Minas Gerais state, Bandeira is positioned to becom e the next major supplier of high-
quality lithium concentrate. Since its formation in 2022, Lithium Ionic has rapidly progressed
toward the construction stage, defining one of the largest lithium deposits in the belt, with ongoing
drilling continuing to expand its significant resource base. Benefiting from a streamlined permitting
process in a mining- friendly jurisdiction, Lithium Ionic is strategically positioned to meet the
growing demand for lithium in the EV and battery supply chains.
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.
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and prospectivity of the Company’s mineral properties, the impact of the engagement of EPCM
service providers, the timing, delivery and cost of EPCM services, the economic viability of
Bandeira, the development of the Company’s mineral properties, the timing for construction of
the Project , the Company’s abili ty to obtain the requisite permitting and approvals and the
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