ASX-listed Infinity Lithium Corporation has signed a consultancy agreement with Spanish mining outfit Promotora de Minas de Carbon as the Australian company looks to shore up its San Jose lithium project in Spain’s Extremadura region. Forty-five-year-old Promotora de Minas de Carbon has agreed to provide mining advisory services to Infinity for an all-options success fee.
The payment comprises two tranches of 20 million Infinity options.
According to Infinity, Promotora de Minas de Carbon has been involved with the assessment, development and exploitation of several mining assets both in Spain and in South America and across multiple commodities.
Infinity was recently notified that a key research or investigation permit “Valdeflorez” application – pertaining to a section of the San Jose tenure and required to advance the project – was cancelled by the Extremadura regional government.
The company has lodged an appeal against the “unexpected” decision.
The status of the investigation permit Ampliacion Valdeflorez that covers a much larger area around the Valdeflorez application ground and was granted last year has not changed, Infinity points out.
Madrid-based Promotora de Minas de Carbon will work with Infinity to ensure the investigation permit Ampliacion Valdeflorez remains in force.
Infinity’s wholly owned Spanish subsidiary, Extremadura Mining, holds a 75 per cent interest in the joint venture entity that manages San Jose.
Infinity Lithium Chief Executive Officer, Ryan Parkin said: “The JV partners strongly dispute the decision and are pursuing all options to reinstate the investigation permit. The company, in unison with our joint venture partners, are reserving all rights relating to the cancellation of the permit.”
“The company will work with all stakeholders and aims to seek a constructive and positive resolution whether through the permit or successive rights held by the joint venture partners.”
Infinity says it considers the regional government’s resolution to cancel the permit to be in direct breach of the law and in contradiction of previous rulings by the government on the environmental and urban legality and viability of the permit.
The brownfields San Jose lithium project tenure encompasses both permits.
A proposed beneficiation plant and downstream lithium chemical conversion facilities have been earmarked for the Ampliacion Valdeflorez area.
Infinity ultimately hopes to produce battery-grade lithium hydroxide from lithium mica ore feedstock sourced from the smaller Valdeflorez application area.
Infinity says San Jose hosts the European Union’s second largest JORC-compliant hard-rock lithium resource at an open-pit indicated and inferred 111.3 million tonnes grading an average 0.61 per cent lithium oxide.
According to the company, a fully developed San Jose’s lithium hydroxide output would provide an essential component in the EU’s development of a vertically integrated lithium-ion battery supply chain.
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By Matt Birney
