Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N) (“Lithium
Ionic” or the “Company”) reports that it has acquired 100% of
Neolit Minerals Participações Ltda. (“Neolit”), a Brazilian company
which owns a 40% interest in the Salinas Project (the “Project”)
and has the right, subject to certain exploration commitments, to
acquire up to an 85% ownership interest in the Project.
The Salinas Project currently includes nine
exploration tenements totaling 5,713 hectares, which are located
approximately 100 kilometres north of Lithium Ionic’s 7,700-hectare
Itinga Project, in the northern region of Minas Gerais State,
Brazil (See Figure 1). The spodumene-rich pegmatite bodies at the
Neolit claims lie within the Salinas region, in the low-pressure,
high-temperature, Curralinho Pegmatite Field of the lithium-rich
Araçuaí Pegmatite District. Neolit is in the process of acquiring a
binding option to acquire up to a 95% ownership interest in a 10th
exploration tenement covering 184 hectares which is contiguous with
the Salinas Project from an arm’s length vendor.
Highlights of the Transaction & the
Salinas Project
- Lithium Ionic
significantly expands its footprint in the northern region of the
Eastern Brazilian Pegmatite Province, a belt which is quickly
emerging as one of the largest lithium spodumene districts
globally.
- Project located
directly adjacent to Latin Resources’ Colina lithium deposit, which
contains an estimated 13.3Mt @ 1.2% Li2O1.
- Five
lithium-rich spodumene-bearing pegmatites outcropping at surface
have been defined at the Salinas Project, ranging from 7 to 14
metres thick.
- A drilling
program of 24 holes (4,000 metres) completed in H2 2022 by Neolit
returned excellent results with intercept highlights of:
- 1.53% Li2O over
11.36m from 43.84m (SLOE-D014)
- 1.22% Li2O over
13.76m from 36.60m (SLOE-D015)
- 1.71% Li2O over
9.82m from 97.70m (SLOE-D013)
- 1.19% Li2O over
13.35m from 239.65m (SLOE-D018)
- Lithium Ionic
intends to initiate a 20,000m drill program in the coming months to
follow up on excellent 2022 results.
- Founder and CEO of Neolit, Dr.
André Guimarães, to join Lithium Ionic as VP Business Development
effective immediately.
Blake Hylands, P.Geo., Chief Executive Officer
of Lithium Ionic, commented, “These new claims represent a
significant expansion over our previous land holdings and
underscores our strategy of becoming a dominant lithium player in a
region that is quickly emerging as one of the largest lithium
spodumene provinces in the world. Neolit’s strong initial drill
results along with the proximity of this Project to an established
13.3Mt grading 1.2% Li2O mineral resource makes the Salinas Project
a highly prospective target in our growing portfolio and we’re
looking forward to initiating the next phase of drilling and
rapidly defining the size and extent of these lithium deposits. We
are also very happy to add the technical strength of Dr. Guimarães
to Lithium Ionic. He will be a key player in our continued
growth.”
André Guimarães, founder of Neolit, commented,
“We are thrilled to join the Lithium Ionic team and see our project
incorporated into their portfolio. Our team has been working in the
region for nearly three years, making significant advancements at
the Salinas Project. Over five pegmatites, ranging from 7 to 14
metres thick and grading between 1.1 to 1.7 Li2O%, have been
identified to date, all within just one of the nine tenements,
which together cover nearly 6,000 hectares. The potential to expand
existing pegmatites and identify new ones is very exciting and
Lithium Ionic will allow us to expedite the development of the
project. We admire Lithium Ionic’s experienced and proven technical
and corporate team who have demonstrated their strong abilities
through the rapid development of the Itinga and Galvani Projects
and feel privileged to now be part of the team.”
Terms of the Agreement
Pursuant to the securities purchase agreement
dated March 10, 2023, between the Company, André Guimarães (the
“Vendor”) and Neolit, the Company acquired a 100% ownership
interest in Neolit. The consideration for the transaction is as
follows:
- A cash payment
by the Company of USD$2,031,004.56 to the Vendor on closing;
- A cash payment
by the Company of USD$2,570,766.82 to Neolit to settle all existing
liabilities of Neolit on closing;
- Issuance of 4
million Lithium Ionic Shares to the Vendor on closing;
- Issuance of 1.5
million Lithium Ionic common share purchase warrants (the “LTH
Warrants”). The LTH Warrants have an exercise price of CAD$2.25, a
term of three years and only vest if Lithium Ionic establishes an
independent National Instrument 43-101 compliant mineral resource
estimate on the Salinas Project of at least 20 million tons with an
average grade greater than 1.3% Li2O; and
- A cash payment by the Company of
USD$1,500,000 to the Vendor on the 18-month anniversary of the
closing of the transaction.
The transaction was completed as an expedited
transaction pursuant to TSX Venture Exchange ("TSXV") Policy 5.3
- Acquisitions and Dispositions of Non-Cash Assets and remains
subject to final TSXV acceptance. The transaction is at arms-length
and no finder’s fees were paid in connection therewith.
Neolit’s Salinas Project
Overview
The Salinas Project (“Salinas”) is located in
the lithium-rich Araçuaí Pegmatite District (“APD”), the northern
part of the Eastern Brazilian Pegmatite Province, which hosts the
largest lithium reserves in Brazil. Salinas is situated
approximately 100 kilometres north of Lithium Ionic’s Itinga claims
(see Figure 1).
Salinas is located directly adjacent to Latin
Resources’ Colina lithium deposit, which currently contains an
estimated 13.3Mt @ 1.2% Li2O. It also surrounds a large outcropping
pegmatite that has been mined for spodumene intermittently for
several decades called “lavra do Zoe”. This pegmatite body, located
only 40 metres away from Neolit’s tenement, is at least 15 metres
thick and has a strike length of at least 210 metres. Metre-sized
spodumene crystals are typical at this outcrop and represent
30%-40% of its total volume (see inset photo in Figure 2).
Prior to the maiden drilling program initiated
by Neolit in August 2022, Neolit completed extensive geological
mapping and systematic surface sampling and geochemistry which
identified several occurrences of lithium mineralized pegmatites
outcropping at surface. Five targets (Zoe, Oeste, Sobradinho, Cubo
and Ju) across a 3.5-kilometre area, showed excellent potential to
host highly evolved LCT (Lithium – Cesium – Tantalum) pegmatites,
which was subsequently confirmed with drilling.
The 4,000-metre, 24-hole drill program yielded
excellent results. Intercept highlights are presented below, while
complete results are presented in Table 1.
Drill highlights include:
- 1.53% Li2O over
11.36m from 43.84m (SLOE-D014)
- 1.22% Li2O over
13.76m from 36.60m (SLOE-D015)
- 1.71% Li2O over
9.82m from 97.70m (SLOE-D013)
- 1.19% Li2O over
13.35m from 239.65m (SLOE-D018)
The drill program was successful in confirming
several mineralized pegmatites, up to 500 metres in strike length
at the Oeste Zone, however based on field observations and sampling
of outcropping pegmatite occurrences, as well as interpretations of
local geology, they could be multiple times larger. Lithium Ionic
intends to initiate a 20,000-metre drill program at Salinas in the
coming months with the aim to define the scale of these lithium
deposits.
Additional Acquired Claims and Future
Potential to Expand Footprint Near Itinga Project
Through the Neolit acquisition, Lithium Ionic is
also acquiring 100% ownership of two claims totaling 769 hectares,
located in the northern region of Minas Gerais state, Brazil. One
of the claims is directly adjacent to the Vale claims acquired in
January 2023 (see the Company’s January 25, 2023 press release for
further details), while the other is located approximately half way
between the Itinga Project claims and the Salinas Project claims
(see Figure 1).
Additionally, Neolit, at its sole discretion, is
able to expand its footprint in the Araçuaí region pursuant to a
definitive agreement it has in place with an arm’s length party
pursuant to which it can acquire claims adjacent to Lithium Ionic’s
wholly owned Itinga project. Neolit can select from a land package
of 10 tenements comprising 4,140 hectares owned by the vendor, the
areas within these tenements Neolit considers most prospective and
acquire up to a 90% ownership interest in such claims by incurring
certain exploration expenditures.
Lithium Ionic will provide further updates to
investors regarding any material advancements regarding this
transaction in due course.
André Guimarães joins
Lithium Ionic as VP of Corporate Development
Lithium Ionic is pleased to welcome the Founder
and CEO of Neolit Strategic Minerals, André Guimarães, as
Vice-President of Corporate Development, effective immediately,
pending final TSXV approval.
André Guimarães is a geology graduate with a PhD
specialization in igneous petrology who has over ten years of
experience in research. Dr. Guimarães founded Neolit in early 2020,
and since then has been directly involved in all corporate and
exploration activities, including field work and contract
negotiations. With his strong background in igneous petrology, he
participates directly in the analyses and interpretation of
geological data, particularly geochemical results.
Prior to his career in geology, he worked as an
archaeologist who was involved in rescue archaeology projects
associated with the development of mining sites in Brazil. During
this time, he acquired extensive experience dealing with the
necessary social-related foundational work required for the
development of a mining site.
Figure 1 – Salinas and Itinga Project
Location
View Figure
1 here: https://www.globenewswire.com/NewsRoom/AttachmentNg/3bab34ac-cc55-4096-837c-7fccbc3fc129
Figure 2 – Five Spodumene-bearing Pegmatite
Targets, Drill Collar Locations and Intercept
Highlights
*(“Lavra do Zoe” photo from the following public
report: De Castro Paes, V. J., Santos, L.D., Tedeschi, M.F.,
Betiollo, L.M. (2016). Avaliação do Potencial do Lítio no
Brasil: Área do Médio Rio Jequitinhonha, Nordeste de Minas
Gerais. Serviço Geológico do Brasil (CPRM), Belo Horizonte,
Série Minerais Estratégicos n.03)
View Figure 2
here: https://www.globenewswire.com/NewsRoom/AttachmentNg/6d7c6bb0-7ac7-48ca-97cd-f49927aa7afb
Table 1 – Salinas Project 4,000m Drill
Program Results
Hole ID |
Az |
Dip |
From |
To |
Metres |
Li2O (%) |
SLCU-D001B |
295° |
60° |
23.68 |
27.19 |
3.51 |
0.58 |
Incl. |
23.68 |
25.55 |
1.87 |
0.93 |
SLCU-D001 |
295° |
60° |
103.66 |
108.85 |
5.19 |
0.63 |
Incl. |
107.36 |
108.33 |
0.97 |
1.62 |
SLCU-D002 |
295° |
60° |
56.11 |
60.19 |
4.08 |
1.26 |
and |
96.74 |
97.78 |
1.04 |
0.97 |
and |
152.40 |
154.40 |
2.00 |
1.49 |
SLCU-D003 |
295° |
60° |
120.85 |
122.75 |
1.90 |
0.61 |
and |
145.12 |
146.62 |
1.50 |
0.87 |
and |
191.39 |
192.83 |
1.44 |
0.77 |
and |
199.91 |
202.96 |
3.05 |
0.69 |
SLSB-D004 |
320° |
60° |
66.66 |
70.92 |
4.26 |
1.32 |
Incl. |
68.51 |
70.30 |
1.79 |
2.35 |
and |
74.88 |
78.33 |
3.45 |
0.94 |
SLSB-D005 |
320° |
60° |
No significant results |
SLSB-D006 |
320° |
60° |
70.50 |
74.35 |
3.85 |
1.55 |
SLJU-D007 |
313° |
90° |
No significant results |
SLJU-D008 |
315° |
50° |
No significant results |
SLJU-D009 |
315° |
60° |
No significant results |
SLJU-D010 |
315° |
50° |
No significant results |
SLCU-D011 |
295° |
60° |
161.76 |
162.70 |
0.94 |
1.22 |
SLOE-D012 |
305° |
60° |
88.60 |
90.38 |
1.78 |
1.38 |
and |
120.52 |
122.15 |
1.63 |
1.00 |
SLOE-D013 |
305° |
50° |
97.70 |
107.52 |
9.82 |
1.71 |
SLOE-D014 |
305° |
50° |
43.84 |
55.20 |
11.36 |
1.53 |
Incl. |
49.84 |
53.84 |
4.00 |
1.99 |
SLOE-D015 |
305° |
50° |
36.60 |
50.36 |
13.76 |
1.22 |
Incl. |
42.72 |
45.66 |
2.94 |
1.95 |
SLOE-D016 |
305° |
50° |
No significant results |
SLOE-D017 |
268° |
90° |
No significant results |
SLOE-D018 |
305° |
50° |
239.65 |
253.00 |
13.35 |
1.19 |
Incl. |
242.64 |
245.32 |
2.68 |
1.86 |
SLOE-D019 |
305° |
50° |
No significant results |
SLOE-D020 |
125° |
90° |
No significant results |
SLOE-D021 |
305° |
50° |
No significant results |
SLOE-D022 |
305° |
60° |
102.68 |
110.12 |
7.44 |
1.09 |
Incl. |
105.36 |
109.20 |
3.84 |
1.48 |
SLZO-D023 |
310° |
60° |
No significant results |
SLZO-D024 |
310° |
80° |
No significant results |
About
Lithium Ionic Corp.
Lithium Ionic is a Canadian-based
lithium-focused mining company with properties covering 14,182
hectares located in the prolific Araçuaí province in Minas Gerais
State, Brazil, which boasts excellent infrastructure, including
highways, access to hydroelectrical grid power, water, and nearby
commercial ports. Its Itinga Project neighbours CBL’s Cachoeira
lithium mine and Sigma Lithium Corp.’s construction-stage Grota do
Cirilo project.
Qualified Persons
The technical information, including assays
relating to the Salinas Project, is historical in nature and has
not been independently verified by Lithium Ionic. A qualified
person, as defined in National Instrument 43-101, has not done
sufficient work on behalf of Lithium Ionic to classify the
historical drilling reported above as current mineral resources or
mineral reserves and Lithium Ionic is not treating the historical
drill results as current mineral resources or mineral reserves.
Each of Carlos Costa, Vice President Exploration of Lithium Ionic
and Blake Hylands, CEO and director of Lithium Ionic, are both
“qualified persons” as defined in NI 43-101 and have reviewed and
approved the contents and technical disclosures in this press
release.
Investor and Media
Inquiries:
+1 647.316.2500info@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 prospectivity of the Company’s mineral properties, the
acquisition of Neolit, the prospectivity of the Salinas Project,
Neolit’s ability to increase ownership in the Salinas Project,
Neolit’s ability to acquire additional mining claims or tenements,
the Company’s ability to produce a NI 43-101 compliant mineral
resource estimate, the mineralization and development of the
Company’s mineral properties, changes to the Company’s management
team, the Company’s exploration program and other mining projects
and prospects thereof. 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 presentation
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.
1 Source: Latin Resources’ publicly disclosed JORC mineral
resource estimate
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