Lithium Ionic Secures LOI from EXIM for US$266M, Representing 100% of Bandeira Project CAPEX
Lithium Ionic Secures LOI from EXIM for US$266M, Representing 100% of Bandeira
Project CAPEX
TORONTO, ON, November 27, 2024 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE:
H3N) (“Lithium Ionic” or the “Company”) is pleased to announce the receipt of a non-binding Letter
of Interest ( “LOI”) from the Export-Import Bank of the United States (“EXIM”) to provide up to
US$266 million in debt financing for its 100%-owned flagship Bandeira Lithium Project (“Bandeira”
or the “Project”) , located in Minas Gerais, Brazil. This funding represents 100% of the capital
expenditure (“CAPEX”) outlined in the May 2024 Feasibility Study, marking a pivotal milestone as
the Company accelerates toward construction and production within the next 2 years.
EXIM LOI Highlights:
▪ Up to US$266 million in debt financing for Bandeira Project development, covering
the entire CAPEX outlined in the May 2024 Feasibility Study.
▪ Maximum repayment term of 15 years.
▪ EXIM, the official export credit agency of the United States, plays a pivotal role in
supporting U.S. exporters and strengthening supply chains.
▪ The LOI reflects the Project’s alignment with EXIM’s China and Transformational
Export Program (CTEP), which emphasizes critical minerals essential for energy
security and electrification.
▪ EXIM’s support underscores the critical role of the Bandeira Project in bolstering
the United States’ energy security and supporting the global battery supply chain.
▪ Lithium Ionic will now work with EXIM to complete the due diligence process and
secure a definitive financial agreement.
Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “This Letter of Interest from EXIM is a
major achievement for Lithium Ionic, providing a clear pathway to fully fund the development of
the Bandeira Project. Securing this support demonstrates the viability of the Project, reflects the
strength of our Project and team, and the growing recognition and importance of Brazil’s Lithium
Valley in the global move towards electrification. We extend our sincere appreciation to the US
Southern Command (SOUTHCOM) and the US State Department for their direct interest in the
Project and for reaffirming its strategic value to the security of the United States, Canada, and
partner nations. With this backing, we are a major step closer to achieving our goal of becoming
Brazil’s next major lithium producer.”
While the Bandeira Project covers only approximately 1% of its ~17,000-hectare land holdings in
the Lithium Valley, it represents the cornerstone of Lithium Ionic’s growth strategy. In May 2024,
a robust Feasibility Study demonstrat ed a 14 -year mine life, average annual production of
178,000 tonnes of high -quality 5.5% L i2O spodumene concentrate ( 24.2k tpa LCE ), and
competitive on-site operating costs of US$444 per tonne. The study demonstrated a low CAPEX
of US$266 million, delivering a post-tax NPV of US$1.3 billion and an IRR of 40%. Bandeira has
access to excellent infrastructure, including low -cost hydroelectric power, established transport
networks, and proximity to international markets via nearby ports , significantly contributing to its
cost efficiency and competitiveness.
The LOI reflects the culmination of extensive effort, collaboration, and expertise from Arlington
Innovation Partners, BMO Capital Markets, and the Ervin Graves Strategy Group, who have all
played an instrumental role in reaching this important milestone for the Bandeira Project.
EXIM’s funding commitment to the Company is conditional upon Lithium Ionic completing the
application for funding , satisfactory due diligence by EXIM and EXIM’s customary approval
process of a final financial commitment.
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 exploring and developing its lithium properties in
Brazil. Its Itinga and Salinas group of properties cover ~17,000 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. 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.
Investor and Media Inquiries:
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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 devel opments 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 refl ected 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
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are intended to identify forward -looking statements and information. The forward -looking
statements and information in this press release include information relating to the mineralization
and prospectivity of the Company’s mineral properties, the Company’s ability to obtain a definitive
binding commitment from EXIM, the LOI, the Company’s ability to fin ance the Project, the
economic viability of Bandeira, the development of the Company’s mineral properties, the
Company’s exploration program and other mining projects and prospects thereof, the Company’s
ability to obtain the requisite permitting 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,
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or other future events, to be materially different from any future results, performance or
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