Infinity secures funding for San José lithium project
Australian minerals company Infinity Lithium Corporation has executed a memorandum of understanding (MoU) with European Union (EU) platform steering group EIT InnoEnergy for equity investment and a collaboration agreement relating to the San José lithium project, in Spain.
This is further to Infinity’s nomination as one of the first potential investees selected by the Business Investment Platform, an initiative organised by the European Battery Alliance.
Infinity delivered the San José lithium hydroxide prefeasibility study and declared the maiden Joint Ore Reserves Committee (Jorc) ore reserve in the third quarter of 2019, highlighting the exceptional project economics of a 30-year lithium hydroxide product using the EU’s second-largest hard rock lithium Jorc resource.
The MoU is designed to allow for the completion of binding contracts over a multi-staged and -faceted investment, support and assistance package.
It is expected that the required verification, documentation and completion of the formal agreement may take several weeks.
The MoU outlines a plan which targets several segments of Infinity’s proposed project development including an equity investment aligned to technical tests and potential progression towards the construction of a pilot plant, assistance in securing full project financing including offtake, support in accelerating the project timeline, improvement in societal awareness and, ultimately, assistance in securing project funding.
EIT InnoEnergy will initially invest €800 000 in Infinity at A$0.05 apiece.
The funds will be allocated to the development of the first phase of a two-phase pilot plant designed to produce battery lithium grade hydroxide and deliver it to selected European offtakers for testing and validation.
The investment will be organised in staged payments.
EIT InnoEnergy will also lead fundraising activities for the second phase of the pilot plant project.
It is envisaged that the group will potentially source funds from EU investors or from EU available funding mechanisms that are applicable to support the development of the EU’s ambitions to develop a lithium-ion battery supply chain.
EIT InnoEnergy will provide guidance and expertise in the protection of the intellectual property created under the test work programme and will participate in the design of the licensing scheme that will target the application of the technology created by the test work while allowing unhindered use at San José by Infinity.
This potentially has significant implications for other European assets.
EIT InnoEnergy has the capability and has represented the potential to assist Infinity in securing full project financing including both equity and debt.
It will seek to bring senior European and Spanish representatives to the leadership of Infinity.
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