Name of the Project
San José lithium hydroxide project.

Location
The project is located in the Extremadura region of western Spain.

Project Owner/s
Tecnología Extremeña Del Lito, a 75:25 joint venture (JV) between Infinity Lithium Corporation and Valoriza Mineria, a subsidiary of Sacyr. Infinity maintains the right to progress to 100% project ownership, as a result of the negotiated JV agreement.

Project Description
A prefeasibility study (PFS) has confirmed that the project offers an extended production life with reduced social, environmental and visual impacts.

It has indicated resources of 59-million tonnes and inferred resources of 52.2-million tonnes.

The PFS proposes 30 years of lithium hydroxide production from 19 years of mining.

The project aims to produce about 15 000 t/y in the first ten years of operation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $860-million and an internal rate of return of 42.3%, with a capital payback from the start of production of 2.5 years.

Capital Expenditure
Preproduction capital expenditure is estimated at $267.9-million.

Planned Start/End Date
Not stated.

Latest Developments
Infinity Lithium Corporation has concluded a memorandum of understanding (MoU) with European Union (EU) platform steering group EIT InnoEnergy for equity investment and a collaboration agreement pertaining to the San José lithium project.

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.

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 that 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 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 available EU funding mechanisms, which 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 testwork programme and will participate in the design of the licensing scheme that will target the application of the technology created by the testwork, while allowing for the unhindered use of what? 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 equity and debt.

It will seek to bring senior European and Spanish representatives to the leadership of Infinity. 

Key Contracts and Suppliers
Snowden Mining Consultants, Cube Consulting, Wave International, Knight Piésold, IMO Project Services, Mining Sense, Valoriza Mineria and AGQ Laboratories (scoping study); Wave International (process plant design and cost estimates; Snowden Mining Consultants (geology and mineral resource estimate, and mining ore reserve); Nagrom Laboratories (beneficiation laboratory works); ALS Laboratories (hydromet laboratory testworks); Valoriza Minera (environment, community and health, safety and environment); Land and Marine Geological Services (tailings – waste dump design and stability); Fastmarkets MD (markets); and Mining Sense (logistics).


Contact Details for Project Information
Infinity-Lithium, tel +34 927 208 134 or email admin@extremaduramining.com.