Rock Teck advances site preparation for lithium converter project in Germany
Once complete, the Guben converter will be the first of its kind in Europe, with expected annual production of 24,000 tonnes of lithium hydroxide.
Lithium Ionic (TSX: LTH) announced on Wednesday that it has secured preliminary approval for a $266 million loan guarantee from the Export-Import Bank of the United States (EXIM) to support its flagship Bandeira lithium project in Minas Gerais, Brazil.
The funding represents 100% of the project’s initial capital cost as outlined in a May 2024 feasibility study.
Lithium Ionic will now collaborate with EXIM, the official export credit agency of the US, to complete the due diligence process and finalize a definitive financial agreement.
According to the feasibility study, the Bandeira project has an after-tax net present value of $1.3 billion, an internal rate of return of 40% and a payback period of at 3.4 years. The report assumes a spodumene price of $2,277 per tonne.
The underground mine is expected to produce approximately 17.2 million tonnes of lithium carbonate equivalent, grading 5.5% lithium oxide, over a 14-year lifespan. Lithium Ionic anticipates construction and production to commence at Bandeira within the next two years.
Bandeira is located just northeast of Araçuaí, in a region well-connected by logistics and infrastructure. The project’s claims cover 1.6 sq. km, which represents only about 1% of Lithium Ionic’s 141.8-sq.-km land package in the “Lithium Valley,” where the company also owns its Salinas project, approximately 120 km north of Bandeira.
Shares of Lithium Ionic rose 4.3% by 11:40 a.m. in Toronto, giving the company a market capitalization of approximately C$154 million ($110 million).
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