Lithium Ionic Corp. has entered into a definitive agreement to sell its Salinas group of lithium properties—including the Baixa Grande lithium resource in Minas Gerais, Brazil—to PLS Brasil Mineração Ltda., a wholly owned subsidiary of PLS Group Limited, for US$37.5 million in cash.

The transaction, expected to close within 10 business days subject to customary conditions, comprises US$30.0 million payable at closing and a US$7.5 million deferred payment due on the earlier of a positive final investment decision for PLS’s adjacent Colina Project or December 31, 2029. In addition to the cash consideration, Lithium Ionic will retain a 2.0% royalty on future spodumene sales from Baixa Grande, calculated on a free-on-board basis. The transaction is expected to result in the Baixa Grande deposit being evaluated for integration with PLS’s Colina Project.

Proceeds from the sale will strengthen the company's balance sheet and provide non-dilutive capital to support early works, procurement, and construction-readiness activities at Lithium Ionic’s 100%-owned Bandeira Lithium Project as it advances toward a construction decision.

Reflecting on the transaction, Lithium Ionic CEO Blake Hylands commented:

“Salinas demonstrates the value our team creates through disciplined exploration. We entered the district in early 2023 and, in under two years, advanced it from first drill holes to a spodumene mineral resource. This Transaction crystallizes that value for shareholders without dilution, at a constructive point in the lithium cycle, and the Royalty keeps shareholders exposed to Baixa Grande’s potential future development under PLS, one of the largest hard-rock lithium operators in the world. PLS is a natural fit as the acquirer of Baixa Grande given its neighbouring Colina Project. We are pleased to see it pass to a leading lithium producer rapidly growing its presence in the Lithium Valley, and with a strengthened balance sheet, we are squarely focused on advancing Bandeira toward a construction decision and becoming a near-term, low-cost lithium producer.”

— Blake Hylands, CEO

Read the full announcement: Lithium Ionic Announces Agreement to Sell its Salinas Group of Lithium Properties to PLS for US$37.5 Million in Cash, Retaining a 2.0% Royalty on Future Spodumene Sales