11:52 AM EDT, 05/30/2024 (MT Newswires) -- Lithium Ionic ( LTHCF ) on Thursday said it executed a binding term sheet with Appian Capital Advisory to sell a 2.25% gross revenue royalty on its Bandeira Deposit in exchange for an upfront cash payment of US$20 million.

Appian is an investment advisor to private capital funds that invest solely in mining and mining-related companies.

Proceeds will be used to advance the development and construction of the Bandeira Lithium Project in the Lithium Valley in Minas Gerais State, Brazil. On Wednesday, Lithium Ionic ( LTHCF ) announced feasibility study results for Bandeira supporting a 14-year, low-cost mining operation producing 178,000tpa of high-quality spodumene concentrate (5.5% Li2O), resulting in a post-tax NPV8 of US$1.3B and an IRR of 40%.

The company may fully buy-back the royalty within the first five years for a fee of US$67.5 million.

Lithium Ionic ( LTHCF ) shares were last seen up $0.03 to $0.92 on the TSX Venture Exchange.

Price: 0.92, Change: +0.03, Percent Change: +3.37