PERTH (miningweekly.com) – ASX-listed Infinity Lithium Corporation has struck a binding sales agreement to divest of its potash assets in Gabon, allowing the company to focus on its San Jose lithium project, in Spain.
Infinity told shareholders that the divestment of its subsidiary Equatorial Potash would remove costs associated with the discontinued operations and holding costs of the potash assets.
In exchange for full ownership of Equatorial Potash, buyer Meridian Drilling will provide a waiver on any outstanding fees related to drilling, and a waiver of any costs and obligations related to the demobilization of drilling equipment at the site.
“Infinity will be focused on the progression of San Jose and the sale of the potash project completes our strategic divestment of noncore assets,” said MD Ryan Parkin.
“We believe that the company remains well placed to attract European support through strategic investments with our interest aligned to European ambitions to develop an integrated lithium-ion battery supply chain.
“Lithium hydroxide remains an essential component required to support the EU’s burgeoning electric vehicle market, and the EU is focusing on the localization of lithium supply to limit exposure to Chinese convertors.”