Lithium Ionic has secured a non-binding letter of interest (LOI) from the Export-Import Bank of the US (EXIM) for up to $266m in debt financing for its fully owned flagship Bandeira lithium project in Brazil.
The proposed funding is set to cover the entirety of the capital expenditure (capex) outlined in the company’s May 2024 feasibility study (FS).
It will enable the company to advance the Brazilian lithium project towards construction and production within the next two years.
The export credit agency’s debt financing outlines a maximum loan term of 15 years and underscores the Bandeira project’s alignment with EXIM’s China and Transformational Export Program (CTEP).
The initiative supports critical mineral projects that enhance energy security and advance electrification.
The LOI includes contributions from Arlington Innovation Partners, BMO Capital Markets, and the Ervin Graves Strategy Group.
EXIM’s commitment remains conditional on Lithium Ionic completing its funding application, undergoing satisfactory due diligence, and securing customary approvals from the export credit agency.
Lithium Ionic CEO Blake Hylands said: “This Letter of Interest from EXIM is a major achievement for Lithium Ionic, 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.”
Located in Minas Gerais, the Bandeira lithium occupies only nearly 1% of the company’s 17,000ha holdings in Brazil’s Lithium Valley.
The FS details a 14-year mine life with an average annual production of 178,000 tonnes of 5.5% lithium oxide (Li2O) spodumene concentrate.
It also projects an after-tax net present value (NPV) of $1.3bn and an internal rate of return (IRR) of 40% for the Bandeira lithium project.
The Brazilian lithium project has access to low-cost hydroelectric power, established transport infrastructure, and international markets via nearby ports, all of which contribute to its cost efficiency.
