Lithium Ionic’s shares shot up 7.6% in Toronto by midday to C$0.86 apiece, for a market capitalization of C$118.8 million ($87m).
Net proceeds will go towards Lithium Ionic’s two flagship projects, Itinga and Salinas, which together cover over 141 sq. km. of Brazil’s ‘Lithium Valley’, which is known for its hard-rock lithium production.
The Itinga project is situated in the same region as CBL’s Cachoeira lithium mine, which has produced lithium for over 30 years, and Sigma Lithium’s Grota do Cirilo project.
An integral part of the Itinga project is the Bandeira deposit, which has a measured and indicated resource of 23.7 million tonnes grading 1.34% lithium oxide (Li2O), for 783,000 tonnes of lithium carbonate equivalent (LCE).
A new feasibility study for Bandeira gave the project an after-tax net present value (at an 8% discount rate) of $1.3 billion, a post-tax internal rate of return of 40% and initial capex of…
