Can you introduce us to Lithium Ionic and the company’s history in Brazil?

Lithium Ionic is listed on the TSX-V, focusing on lithium exploration and development to produce lithium concentrate in Brazil. The company started its activities in late 2021, purchasing tenements in the Vale do Jequitinhonha. Initially, we had five tenements; today, we own or have options on 14,180 hectares, a significant jump in just three years. We raised C$7.5 million, conducted geochemical research, identified anomalies, and started drilling in April 2022. In two years, we developed more than 60 million t of resources at our flagship Bandeira project with a feasibility study. We began the environmental license process in November of last year. In my opinion, we have the best lithium project in Brazil, and we have a very competitive OPEX and a solid commitment to social and environmental responsibility.

Can you give us an overview of the company's lithium projects in Brazil and details about your Bandeira project's recent feasibility report results?

Our 14,000 hectares are in Araçuaí, with additional tenements 100 km away in Salinas, where we are exploring. The Bandeira project is uniquely located between CBL and Sigma Lithium, two major lithium operations in Minas Gerais, Brazil's pre-eminent mining state. The area is well-supported with clean hydroelectric power, relatively close to port facilities (350 km), and has sufficient water and road infrastructure. The recent feasibility study report, which was just concluded, has found that the project will involve underground mining to produce 1.3 million t/y of ore, with minimal surface impact and environmental considerations. We aim to produce 178,000 t/y of concentrate, with a 14-year project life, US$266 million CapEx, and an NPV of US$1.3 billion post-tax. Our OPEX is US$444/t of concentrate, making it highly competitive. The Bandeira area has 41 million t of lithium resource, supporting our long-term plans with low mining risk and proven technology.

What was the commercial strategy behind acquiring the remaining 15% of the Salinas assets?

We initially obtained 85% of the tenement and recently acquired the remaining 15% after identifying about 15 million t in the area. Salinas's potential is comparable to the Bandeira project, prompting us to secure full ownership.

How does the Lithium Valley in Minas Gerais compare to other lithium hotspots across the Americas?

Our region boasts high-grade spodumene and minimal amounts of other lithium minerals, ensuring excellent recovery rates of 68.9%. The large crystals mean we do not need extensive grinding, allowing for a simple, low-cost process using ore sorting and DMS. The unique geological conditions in the Jequitinhonha Valley favour spodumene crystallization, making it one of the best areas globally for lithium extraction.

Why should international investors commit their capital to mining projects in Brazil?

Besides great geology, Brazil offers a low capital intensity (US$785/t of LCE) compared to global averages of over US$1,000 for project development. Our NPV to CapEx ratio is 4.9 times higher than the average for hard rock and brine projects elsewhere. Brazil's implementation costs are lower than those of Europe or Africa, making it an attractive destination for global investors.

Can you discuss Brazilian lithium's role in electrifying supply chains and vehicle fleets globally?

Lithium is crucial for both mobile and stationary batteries, and its role in energy storage is unmatched. Despite past work with vanadium, lithium is the best solution for energy storage, and its demand will continue to grow beyond 2028. The future of lithium is very bright, as all forecasts point to demand outpacing supply by 2028 as electrification continues to scale, meaning that the price of lithium will continue to rise. Brazil's lithium will be vital in meeting this demand and supporting the global energy transition.

What are Lithium Ionic’s priorities for the coming year?

Following the conclusion of the favourable feasibility study for our Bandeira project, we aim to secure the environmental license by Q3 2024. We are currently negotiating with strategic investors and fundraising for the project’s CapEx needs. We will continue exploration at Salinas and other tenements in the Jequitinhonha Valley, targeting Bandeira project production by 2026 and Salinas by 2027. Our focus is to establish Lithium Ionic as a key player in the lithium market, with a strong commitment to social and environmental responsibility.