09:22 AM EDT, 07/03/2024 (MT Newswires) -- Lithium Ionic ( LTHCF ) , trading at 52 week lows, said Wednesday that it secured an option to acquire up to a 90% interest in New Itinga properties in Brazil's lithium valley in Minas Gerais state.

Under the terms, Lithium Ionic ( LTHCF ) subsidiary Neolit can acquire the stake by investing about $5.5 million at the minimum on the project by the first quarter of 2030.

Neolit has the right to conduct an exploration program and deliver a feasibility study on the properties, Lithium Ionic ( LTHCF ) said.

"This transaction marks a significant milestone in our growth strategy, allowing us to expand our presence in Brazil's premier lithium district," Lithium Ionic ( LTHCF ) CEO Blake Hylands said. "We are excited about the potential these properties hold and are committed to advancing them responsibly to create value for our shareholders and stakeholders."

Lithium Ionic ( LTHCF ) said Neolit will commence an exploration program to delineate potential resources within the properties, while engaging with local communities and stakeholders to ensure the sustainable development of the projects.

The company's share price fell 1.9% yesterday to $0.53.