08:45 AM EST, 11/27/2024 (MT Newswires) -- Lithium Ionic ( LTHCF ) on Wednesday said it received a non-binding letter of interest (LOI) from the Export-Import Bank of the United States (EXIM), which will provide US$266 million of financing for its Bandeira Lithium Project in Brazil to cover the entire capital expenditure needed for development.

The company said finalizing the terms of the LOI depends on it completing its application for the funding and due diligence by EXIM, the official export credit agency of the U.S., on the project. The funds would be repayable over 15 years. The company said it marks a "pivotal milestone" as it "accelerates toward construction and production" within the next two years.

"This Letter of Interest from EXIM is a major achievement for Lithium Ionic ( LTHCF ), providing a clear pathway to fully fund the development of the Bandeira Project. Securing this support demonstrates the viability of the Project, reflects the strength of our Project and team, and the growing recognition and importance of Brazil's Lithium Valley in the global move towards electrification," chief executive Blake Hylands said in a release.

A May feasibility study for the project said it could produce 178,000 tonnes of spodumene concentrate per year over a 14-year mine life.

Lithium Ionic ( LTHCF ) shares closed up $0.04 to $0.93 Tuesday on the TSX Venture Exchange.