Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N) announced a pivotal step forward for its flagship Bandeira Lithium Project in Minas Gerais, Brazil, with a non-binding Letter of Interest (LOI) from the Export-Import Bank of the United States (EXIM). The proposed funding of up to $266 million would fully cover the project’s capital expenditure (CAPEX) as outlined in the May 2024 Feasibility Study. This development positions Lithium Ionic to move closer to construction and production, projected within the next two years.
The EXIM commitment marks a significant milestone for Lithium Ionic, which will now focus on completing due diligence and advancing toward a definitive financial agreement.
Blake Hylands, CEO of Lithium Ionic, expressed optimism about the development, saying:
"This Letter of Interest from EXIM is a remarkable milestone for our company. It validates the strength and viability of the Bandeira Project while emphasizing Brazil’s growing importance in the global lithium market. We’re grateful for the involvement of the US Southern Command and the US State Department, whose support highlights the project’s strategic value for North American and global energy security."
The Bandeira Lithium Project, while representing just 1% of Lithium Ionic’s vast 17,000-hectare land holdings in Brazil’s "Lithium Valley," serves as the foundation of the company’s growth strategy. The May 2024 Feasibility Study detailed a robust 14-year mine life with annual production averaging 178,000 tonnes of high-quality 5.5% Li₂O spodumene concentrate (24.2k tonnes LCE). The study also demonstrated competitive operating costs of $444 per tonne and a post-tax net present value (NPV) of $1.3 billion, with a 40% internal rate of return (IRR).
Strategically located with access to hydroelectric power, transport networks, and ports, Bandeira benefits from cost-efficient infrastructure, enhancing its competitiveness in international markets.
Lithium Ionic credited the milestone to the collaborative efforts of Arlington Innovation Partners, BMO Capital Markets, and the Ervin Graves Strategy Group, who played key roles in securing the LOI. The funding remains conditional on the completion of EXIM’s due diligence and final approval processes.
As Lithium Ionic accelerates toward its goal of becoming a leading lithium producer in Brazil, the EXIM LOI represents not only financial validation but also strategic alignment with global efforts to transition to clean energy.
With this backing, the Bandeira Project is poised to play a critical role in the global electrification movement and reinforce the significance of Brazil’s Lithium Valley on the world stage.
The EXIM financing marks a pivotal step for Lithium Ionic, enabling the Bandeira Project to advance toward production and solidify its position in the global lithium market. With strong backing and strategic alignment, the company is well-positioned to drive Brazil’s prominence in the energy transition and electrification era.
