ASX-listed Infinity Lithium Corp. Ltd., Subiaco, Western Australia, said on July 9 that it has signed a binding Letter of Intent (LOI) for the sale of the company’s wholly-owned subsidiary Equatorial Potash Pty Ltd. (EPPL), which owns the Banio and Mamana Potash Projects in Gabon. The LOI grants the unidentified buyer a 12-month exclusive option to purchase 100 percent interest in EPPL for $3 million. The option holder, as part of the consideration, is to cover the holding and operating costs attributable to projects for the term of the option.
“The Gabonese potash assets are high quality, proven potash deposits with great potential,” said Infinity Lithium Managing Director Ryan Parkin. “Infinity has previously announced its intention to divest the Gabon assets and is now focused solely on the lithium industry, and has recently advanced to 75 percent ownership of the massive San Jose lithium deposit in Spain. This warrants our absolute focus and attention. Having a deal structure which can deliver real value through removing holding costs for Gabon, and providing leverage to equity upside is a good outcome.”
Infinity acquired the Gabon potash assets prior to becoming involved in the lithium project in Spain.
Infinity owns 100 percent of Banio and the application for Mamana, which it said is a drill-proven, high-grade, shallow deposit. It said both projects have access to infrastructure, being located on the coast and on major transport river ways with direct access to export ports, adding that the sites are ideally located to serve the Brazil market.
Infinity was previously known as Plymouth Minerals Ltd.