Infinity Lithium has signed a binding letter of intent to sell its non-core Banio and Mamana potash projects in Gabon to an unnamed buyer for up to USD$3 million in cash or shares. The buyer has a 12-month option to pay the full amount in cash or pay USD$2 million in shares in a public or private entity with a further USD$1 million in shares to be paid on delivery of a JORC-compliant scoping study within three years.
Infinity Lithium has signed a binding letter of intent to sell its non-core Banio and Mamana potash projects in the African nation of Gabon to an unnamed buyer for up to USD$3 million in cash or shares.
Under the agreement, the buyer has a 12-month option to pay the full amount in cash or pay USD$2 million in shares in a public or private entity with a further USD$1 million in shares to be paid on delivery of a JORC-compliant scoping study within three years.
During this option period, the buyer is also required to cover all general holding and operating costs in Gabon.
The Banio project is located in the south-west corner of Gabon on the border with the Republic of Congo about 70 km north of the world-class Kola and Dougou potash deposits, all of which are situated within the same sedimentary horizons of the Congo Basin.
Banio has a JORC-compliant inferred mineral resource of 1.67 billion tonnes at 16.1% potassium chloride which incorporates higher-grade sylvinite mineralisation of 30.7 million tonnes at 25.3% potassium chloride.
This resource covers just 5km of the more than 20km strike at Banio.
Mamana is located on the Ogooue River and includes more than 6,000 metres of historical drilling that predates JORC resource standards.
Infinity Managing Director Ryan Parkin said: “Infinity has previously announced its intention to divest the Gabon assets and is now focussed solely on the lithium industry and has recently advanced to 75% ownership of the massive San José lithium deposit in Spain. This warrants our absolute focus and attention.”
“Having a deal structure which can deliver real value through removing holding costs for Gabon and providing leverage to equity upside is a good outcome.”
Infinity is planning an integrated project at San José, where it will mine, process and refine lithium chemicals on-site in Spain.
San José has a JORC-compliant mineral resource of 111.3 million tonnes grading 0.61% lithium oxide and 206 parts per million tin.
The company has already received recognition from the European Battery Alliance, or “EBA”, that the San José project is a potential cornerstone component of its goal to create an integrated lithium-ion supply chain within the European Union.
Divesting its non-core Gabon potash assets will allow Infinity to continue advancing the lithium project to support the EBA’s plan.