Lithium Ionic Corp.

Lithium Ionic Corp. is a junior lithium development company headquartered in Toronto, Canada, operating primarily in Brazil. The company's portfolio consists of 3 projects, comprising 1 development and 2 advanced exploration projects. Key assets include Bandeira. The company operates as an exploration and development entity focused on advancing mineral properties through a model that utilizes wholly-owned operating subsidiaries. A key component of its operational design includes a special purpose vehicle, in which the company holds a minority equity stake but maintains control, specifically for the acquisition of surface rights. The planned mineral processing flowsheet is designed for efficiency, incorporating a two-stage crushing circuit, dry screening classification, ore sorting, and Dense Media Separation to produce a final concentrate. This technical approach is complemented by plans for a sustainable dry stack tailings facility. The business model is positioned to achieve a low operating cost structure, aiming for first-quartile performance within the global industry. This competitive positioning is further supported by strategic agreements to secure access to low-cost, renewable hydroelectric power for long-term operational needs, underpinning the economic viability of its development projects.

Strategic priorities are centered on the rapid advancement of its principal project towards production, with the objective of establishing the organization as a near-term producer. This fast-track approach is supported by a multi-faceted capital strategy that includes securing project debt financing, evidenced by a non-binding letter of interest from a major export-import bank, and leveraging royalty agreements for upfront development capital. A core component of the long-term strategy is the continuous expansion of the mineral resource base through systematic and extensive drilling programs, which are guided by geochemical exploration and mapping to identify high-priority targets. Management is also focused on implementing optimization opportunities identified during advanced technical studies to streamline capital expenditures and operating costs. The project's mine plan is slated for updates to incorporate an expanded resource estimate, potentially extending the operational life and enhancing overall project economics. A key enabling initiative involves an agreement with a major utility provider to construct and electrify essential power infrastructure, securing the energy supply required for future operations.

The management approach emphasizes rigorous technical and economic validation through the engagement of multiple independent, specialized consulting firms for key project milestones, including feasibility studies, resource certification, and environmental assessments. Technical disclosures are consistently reviewed and approved by a designated Qualified Person, ensuring compliance with established industry standards for reporting. The leadership team has been strengthened through strategic acquisitions, which have integrated experienced personnel, such as the founder of an acquired entity who now serves as a vice president of business development. Governance frameworks include specific management contracts that stipulate payments upon a change of control or termination, providing clarity on executive arrangements. The company's operational execution is guided by a team of experienced professionals tasked with advancing the primary project through construction and into operational readiness, supported by recently awarded contracts for engineering, design, and construction management services.

The organization has formalized its commitment to sustainability by joining the United Nations Global Compact, pledging to advance sustainable development goals and report annually on its progress. To align with industry best practices, the company initiated an Initiative for Responsible Mining Assurance (IRMA) Ready self-assessment for its main project. A key operational initiative includes the implementation of specialized ESG reporting software from ONYEN Corporation to systematically capture, monitor, and report on environmental, social, and governance data points in accordance with global standards. Environmental stewardship is demonstrated through the completion of an Environmental Impact Assessment study as part of the permitting process and securing approvals from the relevant water management institute for the use of local water resources. The company has also published a dedicated sustainability report, enhancing transparency regarding its ESG practices and performance.

The company conducts its exploration and development activities through its wholly-owned Brazilian subsidiaries, MGLIT Empreendimentos Ltda. and Neolit Minerals Participacoes Ltda. In March 2023, the organization acquired a 100% interest in Neolit Minerals Participações Ltda., and in June 2024, Neolit acquired the remaining 15% interest in its underlying properties. The corporate structure also includes control over Valitar Participações S.A., a special purpose vehicle established to acquire surface rights. A significant financing arrangement was completed in July 2024, when the company entered into a royalty agreement with Appian Capital Advisory LLP, granting a 2.25% gross revenue royalty in exchange for development funding. The company has also entered into a series of agreements to progressively acquire up to a 100% interest in Vale Do Litio Mineracao Ltda. from Exotic Mineração Ltda. Furthermore, its subsidiary Neolit has an option agreement with a consortium including K2 Mineração e Exportação EIRELI to acquire up to a 90% interest in 3 newly formed special purpose vehicles.