International Lithium Corp. to receive CAD2.2M plus a 2% net smelter royalty following reduction of interest in its non-core Avalonia project
International Lithium Corp. (ILC) has recently announced a strategic decision to divest a portion of its interest in the Avalonia Lithium Project in Ireland. The company has signed an agreement with strategic partner Ganfeng Lithium Co. Ltd., under which ILC will reduce its ownership stake in the Avalonia Project from 55% to 10%. In return, International Lithium Corp. will receive CAD2.2 million in cash and retain a 2% net smelter royalty (NSR) on the project.
The decision to reduce its interest in the Avalonia Project reflects ILC’s commitment to focusing on its core assets and optimizing the company’s portfolio. By divesting a portion of its interest in the Avalonia Project, International Lithium Corp. can reallocate resources and capital to projects that align more closely with its strategic objectives and long-term vision.
The transaction with Ganfeng Lithium Co. Ltd. represents a mutually beneficial agreement for both parties. The CAD2.2 million in cash that ILC will receive provides the company with immediate financial resources that can be used to further advance its core projects and explore new opportunities in the lithium sector. Additionally, retaining a 2% NSR on the Avalonia Project ensures that International Lithium Corp. maintains a long-term interest in the project’s success and potential future revenue streams.
Ganfeng Lithium Co. Ltd., a leading global lithium producer and ILC’s strategic partner, stands to benefit from the increased ownership stake in the Avalonia Project. The transaction allows Ganfeng to take a more significant role in the development and operation of the project, leveraging its expertise in lithium production and enhancing the project’s prospects for success.
The Avalonia Lithium Project, located in Ireland, is a key asset for International Lithium Corp. Despite reducing its ownership stake, ILC remains actively involved through its retained NSR and ongoing partnership with Ganfeng. The project is strategically positioned to capitalize on the growing demand for lithium, driven by the expanding global market for electric vehicles and renewable energy storage solutions.
In conclusion, the agreement between International Lithium Corp. and Ganfeng Lithium Co. Ltd. marks a significant milestone for both companies and underscores their commitment to strategic collaboration and value creation. The divestment of a portion of ILC’s interest in the Avalonia Project, coupled with the financial consideration and retained NSR, positions the company for continued growth and success in the dynamic lithium market.