12:07 PM EDT, 07/02/2024 (MT Newswires) -- Lithium Ionic ( LTHCF ) over the holiday weekend said it signed a definitive agreement for US$20 million in royalty financing from Appian Capital Advisory to advance the Bandeira lithium project in Brazil.

Lithium Ionic ( LTHCF ) subsidiary Lithium Ionic Bandeira signed the deal granting Appian affiliate ANRF LI (JSY) a 2.25% gross revenue royalty on the project.

Lithium Ionic ( LTHCF ) can fully buy back the royalty within five years of closing for about US$68 million.

"[Appian's] investment will strengthen our financial footing, and their technical expertise will help optimize our development strategies, ensuring we maintain strong momentum as we advance the Bandeira project towards production," Lithium Ionic ( LTHCF ) CEO Blake Hylands said.

The company said it will also use the proceeds for general corporate purposes and working capital requirements.

Lithium Ionic ( LTHCF ) shares were last seen up $0.01 to $0.55 on the TSX Venture Exchange.

Price: 0.55, Change: +0.01, Percent Change: +1.85