Lithium Ionic (LTH.V) sold its Salinas group of lithium properties, including Baixa Grande in Brazil, to PLS Group for $30 million in cash at closing, the company said after trade Tuesday.
A further $7.5 million will be payable subject to certain conditions being met. Lithium Ionic also retains a 2.0% royalty on future spodumene sales from Baixa Grande.
"The completion of this transaction crystallizes significant value from Salinas while strengthening Lithium Ionic's balance sheet with US$30.0 million in non-dilutive cash proceeds," said Chief Executive Blake Hylands.
"With this transaction complete, our focus remains squarely on advancing our flagship Bandeira Lithium Project toward a construction decision and our objective of becoming a near-term, low-cost lithium producer," he added.
Lithium Ionic shares closed up C$0.035 to C$0.655 on the TSX Venture Exchange.