Lithium Ionic Moves Forward With Critical Contracts for Bandeira Project
TORONTO — Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) is excited to announce that it has commenced Engineering, Procurement, and Construction Management (EPCM) services for its flagship Bandeira Lithium Project situated in Brazil. This significant advancement is an essential step toward transitioning the project into the construction phase, propelling it closer to production.
Key Partnerships to Propel Project Development
As part of this initiative, the company has enlisted the expertise of two leading firms. Hatch Ltd., a renowned global engineering firm, will provide essential engineering and design services for the Bandeira Project. Their substantial knowledge and experience across various commodities, combined with a local presence in Brazil, will enhance the project's development process.
Reta Engenharia, a prominent construction management company in Brazil, has also been brought on board to oversee construction management for Bandeira. Reta’s vast experience with greenfield mining projects makes them an ideal partner for Lithium Ionic, ensuring optimal project outcomes leveraging their strong regional knowledge and proven success.
Strengthening the Project Team
In addition to partnering with established firms, Lithium Ionic is also expanding its internal team. The company is bringing in skilled professionals dedicated to guiding the project through crucial phases, ensuring operational readiness as it shifts into the construction phase.
CEO Highlights Momentum Toward Production
Blake Hylands, CEO of Lithium Ionic, expressed enthusiasm about the recent developments, stating, “Our momentum toward production is stronger than ever as we begin the engineering and construction management phase with our esteemed partners, Hatch and Reta. This crucial milestone brings us closer to realizing our goal of becoming one of Brazil's prominent lithium providers. We are currently advancing through the final stages of permitting at both national and state levels, keeping us firmly on track to establish a sustainable and economically viable lithium mine in this vital global supply chain.”
Permitting Process Making Headway
The permitting process for the Bandeira Project is progressing smoothly at both state and federal levels, with key approvals on the horizon. The current focus is on acquiring the Concomitant Environmental and Installation License (Licença Ambiental Concomitante - LAC), a streamlined permitting step aimed at expediting construction timelines for critical minerals projects. Upon receiving LAC approval, the company will move forward to secure the Mining Concession and the Operating License (Licença de Operação - LO) following a thorough inspection of the completed site facilities. With everything aligning, Lithium Ionic aims to initiate production at Bandeira by mid-2026.
Overview of the Bandeira Lithium Project
The Bandeira property spans 157 hectares, representing approximately 1% of Lithium Ionic's extensive ~17,000-hectare land package within Brazil's Lithium Valley, a region recognized for its rich lithium reserves. It currently constitutes about 70% of the company's global lithium resource estimate of 60.1Mt.
A recent Feasibility Study for the Bandeira Project indicated a promising 14-year mine life, projecting an annual output of 178,000 tonnes of high-quality spodumene concentrate (5.5% Li?O), with a post-tax NPV of US$1.3 billion and an internal rate of return (IRR) of 40%.
Strategic Location and Infrastructure Advantages
Situated in a Tier 1 mining area, Bandeira boasts excellent infrastructure, including cost-effective renewable hydroelectric power, accessibility to water, and efficient transport that connects to foreign markets via nearby ports. This region, known as Brazil's "Lithium Valley," hosts the country's most significant lithium reserves and is quickly becoming a major source for high-purity spodumene concentrate.
Company Vision and Future Prospects
Since its inception in 2022, Lithium Ionic has made remarkable strides toward the construction phase, aiming to seize the growing demand for lithium in the electric vehicle (EV) and battery sectors. With an emphasis on sustainability and efficient operations, the company is strategically positioned to contribute to the evolving global lithium market.
Investor Contact Information
For investor and media inquiries, please reach out via the following:
+1 647.316.2500
info@lithiumionic.com
Frequently Asked Questions
1. What is the significance of the Bandeira Project?
The Bandeira Project is crucial for Lithium Ionic as it positions the company to become a prominent player in lithium production, especially given the global demand for lithium in EVs and batteries.
2. Who are the key partners involved in the Bandeira Project?
Hatch Ltd. and Reta Engenharia have been awarded contracts to provide engineering and construction management services, respectively.
3. When is Lithium Ionic expecting to start production?
The company is aiming to commence initial production at the Bandeira Project in the second half of 2026.
4. How does the geography of the Bandeira Project benefit its development?
Located in Brazil's Lithium Valley, the Bandeira project enjoys exceptional infrastructure, including renewable energy sources and access to major transport routes connecting to international markets.
5. What achievements has Lithium Ionic made since its formation?
Since its establishment in 2022, the company has made significant advancements in defining its lithium projects, particularly for the Bandeira Project, and is rapidly progressing towards construction.
