Infinity Lithium (ASX:INF) is now all-in on lithium, and will have $US3 million ($4.3 million) in shares or cash to play with thanks to a new deal.
AT A GLANCE
- Infinity to offload its African potash assets
- It will get $3 million in cash or shares in return
- The move will allow Infinity to focus on its promising San Jose lithium project in Spain
It told its shareholders this morning that it signed a Letter of Intent to divest its African potash assets, which it picked up before deciding to move into lithium.
The sale of the Banio and Mamana assets will release Infinity from any obligation to spend on the assets during a 12 month option period at least.
During the option period, the acquiring party will have the option to pay Infinity $3 million — either in cash, or $2 million in shares and a further $1 million upon a JORC compliant scoping study.
If Infinity gets cash, it will have $3 million to put towards the development of its San Jose asset but if it gets $2 million in equity it will still share in the upside of the potash projects.
“Infinity has previously announced its intention to divest the Gabon assets and is now focused solely on the lithium industry and has recently advanced to 75 percent ownership of the massive San Jose lithium deposit in Spain. This warrants our absolute focus and attention” Infinity managing director Ryan Parkin said.
“Having a deal structure which can deliver real value through removing our holding costs for Gabon and providing leverage to equity upside is a good outcome.”
MORE ON INFINITY LITHIUM
ABOUT INFINITY LITHIUM
Infinity Lithium (ASX:INF) is an Australian listed minerals company which is seeking to develop its 75 percent owned San Jose Industrial Lithium Project located in Spain.
The project will be developed by open pit methods with the ore treated and refined onsite to produce high quality, battery grade lithium hydroxide.
Infinity’s goal in the long term is to supply the European lithium-ion battery supply chain and EV industry.
Regional lithium production is needed in order to de-risk the strategic European EV supply chain. Infinity offers a sustainable, integrated, low-cost, large and long term source of lithium chemicals.
This content is produced by Star Investing in commercial partnership with Infinity Lithium. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Don’t miss a thing, subscribe now