INVESTMENT HIGHLIGHTS

Lithium Ionic is a Canadian-listed mining company with exploration and development assets located within the Lithium Valley in Minas Gerais State, Brazil. The Lithium Valley is a unique geological belt that hosts a significant concentration of lithium-bearing pegmatites and has emerged as a globally significant lithium production center.

Appian invested US$20m upfront cash in exchange for a 2.25% gross revenue royalty on Lithium Ionics’s Bandeira lithium project (“Bandeira”). Lithium Ionic intends to use the proceeds of the Royalty to further advance the development and construction of Bandeira. The underground project stands out as a low-cost asset with near-term production potential and a low environmental footprint. It benchmarks among the best hard-rock projects globally in terms of resource, cost, and capital intensity. Furthermore, the project has attractive lithium grades and a straightforward processing flowsheet that produces no wet tailings. The asset is also located in a preferred mining jurisdiction for Appian with a more favorable permitting, political, and cost environment than many other jurisdictions with lithium deposits.

In May 2024, the Company announced Feasibility Study results for the Project supporting a 14-year, low-cost mining operation producing 178,000tpa of high-quality spodumene concentrate (5.5% Li₂O). Adjacent to CBL’s Cachoeira mine and within 4km of Sigma Lithium’s mine, Bandeira offers significant resource upside, with an inferred resource of approximately 18 million tonnes. This can potentially extend the mine’s life and increase royalty revenues over time.

Investment case:

• Pure-play lithium investment opportunity consistent with Appian’s strategy to invest in critical minerals required for the long-term global adoption of EVs
• Opportune investment window during weakened lithium price environment
• Well-positioned asset on the lithium cost curve with upside potential
• Brazil is a core, preferred Appian mining jurisdiction with a more favorable permitting, political, and cost environment compared to other lithium resource geographies

For more information about Lithium Ionic please click here.