Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF) (“
Lithium
Ionic” or the “
Company”) is pleased to
announce that further to its June 14, 2022 press release, the
Company has completed the acquisition of two strategic lithium
mining licenses (the “
Licenses” or the
“
Properties”) in Minas Gerais, Brazil (the
“
Transaction”).
The two large Licences are located approximately
2 km to the west of the large Xuxa lithium deposit of Sigma Lithium
and approximately 3 km to the northwest of the CBL lithium mining
operation.
Previously Released Highlights from
Lithium Ionic Drilling at Galvani Licenses:
- Drill intercept
of 1.94% Li2O over 19.78m, incl. 2.33% Li2O over 7.35m
- Drill intercept of 1.27% Li2O over
10.77m, incl. 1.72% Li2O over 2m and 1.70% Li2O over 3.53m
- Drill intercept of 1.57% Li2O over
24.93m, incl. 2.10% Li2O over 7.45m
- Drill intercept of 1.17% Li2O over
42.05m, incl. 1.95% Li2O over 11.72m
Blake Hylands, Chief Executive Officer of
Lithium Ionic, commented, “The Galvani Property, specifically the
Outro Lado showing, have shown the kinds of grades and widths we
feel could potentially lead Lithium Ionic to a significant
resource. The Galvani Property is an excellent addition to our land
holdings in this prolific lithium belt.”
Pursuant to the terms of the asset purchase
agreement dated June 13, 2022, as amended, between the Company,
MGLIT Empreendimentos Ltda., the Company’s wholly-owned subsidiary,
and Galvani Nordeste Mineracao Ltda. (“Galvani”)
the Company has paid an aggregate cash amount of USD$3,310,000 to
Galvani to close the Transaction.
If during the 18 months follow the closing of
the Transaction, the Company, through an independent qualified
person defines an inferred mineral resource estimate of a minimum
of 5Mt with a Li2O content above 1.3%, the Company shall, at
Galvani’s discretion, (i) issue such number of Lithium Ionic shares
equal to USD$2 million calculated using the 7 day VWAP of the
Lithium Ionic shares on the TSX Venture Exchange ending on the
effective date of the technical report evidencing such mineral
resource estimate, subject to a minimum price per Lithium Ionic
share of $0.904 and a maximum total issuance of 2,844,912 Lithium
Ionic shares, or (ii) pay USD$2 million in cash to Galvani on the
effective date of the technical report evidencing such mineral
resource estimate.
The Transaction is arm’s length and the Company has not paid any
finder fees in connection therewith. The TSX Venture has approved
the closing of the Transaction.
About Lithium Ionic Corp.
Lithium Ionic is a publicly-traded company which
owns a 100% ownership interest in the Itinga lithium project in
Brazil (the “Itinga Project” or the
“Project”).
The Itinga Project is located in Minas Gerais
State (MG), Brazil. The Project comprises five mineral licenses
covering more than 1,300 hectares in the prolific Aracuai lithium
province. A portion of the Project occurs immediately south of the
CBL lithium mine and plant, Brazil’s only lithium producer, and
immediately north of the large Barreiro and Xuxa lithium deposits
of Sigma Lithium Corp.
The Project area has excellent infrastructure,
including access to hydroelectrical grid power, water, a commercial
port, highways and communities. Lithium mineralization (spodumene,
lepidolite, petalite) occurs within a halo of pegmatite dikes and
apophyses that occur within the rocks surrounding Neoproterozoic
granitic intrusions. Mineralization within the mineralized province
and the distribution of the mineralized pegmatites is controlled by
a complex and crosscutting system of northeast and northwest
oriented faults that were exploited by the dikes. Mineralized
structures have been identified in two areas within the Project and
the remainder of the Project area remains to be explored.
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,
and both are “qualified persons” as defined in NI 43-101.
For more information please
contact:
Lithium Ionic Corp. Blake
Hylands, P.Geo.Chief Executive OfficerEmail:
bhylands@lithiumionic.com
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 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
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 information. The forward-looking statements and
information in this press release include information relating to
the mineralization and prospectivity of the Licenses, the Company’s
ability to continue to explore and develop the Licenses 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.
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.
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