On 05 June 2019, securities of Infinity Lithium Corporation Limited (ASX: INF) started trading after the release of the pending announcements regarding the San Jose Lithium Project’s Valdeflórez Investigation Permits. INF released a few other announcements regarding the project in Spain, i.e. San Jose Lithium Project.
With the start of yesterday’s (05 June 2019) trading session on ASX, the suspension of trading on INF’s securities was lifted. The stock of the company is currently trading at A$0.070 (as on 6 June 2019,1:02 PM), up by 1.449%.
San Jose Project (Source: Company’s Proactive Investor Conference Presentation)
San José Lithium Project
The San José lithium deposit is spread across a huge space, has been mined earlier and is well drilled lithium-tin deposit strategically situated in the European region.
As per the INF’s announcement on 5 June 2019, it was mentioned that on 29 May 2019, the Junta (Extremadura Regional Government) notified Tecnología Extremeña Del Lito S.L. (‘TEL’) – Joint Venture (Valoriza Mineria and Infinity Lithium) that the Valdeflórez Investigation Permit PI 10343-00 was required to revert to (revoke) application status due to an internal administrative error that occurred in 2016.
Also, the 2015 public tender process resulted in the procurement of licenses by Spanish minerals company Valoriza Minera and further in 2016, Infinity completed the JV agreement with Valoriza Minera, which consequently transferred the Investigation Permit to the project special purpose vehicle TEL. Recently, INF acquired 75% ownership of the project, which was subject to earn-in based on completion of studies.
Meanwhile, it had been advised that administrative defect on behalf of the Department of Mines had caused the reversion to the application, which would be required to rectify the administrative defect and rectification would take minimum 30 days – depending upon public consultation process and assessment of public submissions.
Also, Valdeflórez Investigation Permit remains in application status, and TEL retains maximum reservation of legal rights for JV Partners; these rights would be retained after the grant of Valdeflórez Investigation Permit.
Reportedly, the silver lining appears to be that post Pre-Feasibility Study is completed Spanish law presents an opportunity to proceed directly for Exploitation Concession Application (equivalent to a Mining Licence Application) and move to production of lithium hydroxide irrespective of the underlying application being granted or not.
Also, JV partners seek the delivery of PFS in the coming weeks to produce lithium hydroxide. Importantly, JV is aware of the risks associated with the grant of license and cannot guarantee current and additional applications for tenement or renewals of valid tenements would be granted on a timely basis. The Company believes alternative application after completion of PFS pathways assists in mitigating this risk.
Lithium Endorsement in Spain:
As per the company’s releases, Regional Ministry of Economy and Infrastructure would visit TEL to collaborate, clarify and accompany the JV on the administrative procedure of the permitting process (this had been communicated by The Junta to TEL). Furthermore, Junta expressed its intention to simplify and monitor business projects in Extremadura, from the projects’ development stages through to implementation.
Meanwhile, Spanish business associations promoting lithium development have been very vocal; AEDIVE, publicly declared the supports towards TEL’s project in Extremadura, the association promotes the development of EVs (Electric Vehicles) and houses over 150 members including Jaguar Land Rover, Nissan, Mercedes, BMW.
In addition to this, AEPIBAL – business association for battery and battery storage in Spain, highlighted through its President, Joaquín Chacón:
“the importance of Infinity Lithium’s industrial project in Spain. It is strategic for our country and for the future of the automotive sector in Europe and Spain, the second largest automaker in the region“.
Lithium Endorsement in Europe
The European Battery Alliance is a major organisation in the EU and hosts key stakeholders, including the European Commission, the European Investment Bank (‘EIB’) and key industry participants in the EU countries. Reportedly, EBA declared the support towards Lithium-ion technologies, and specifically cited Infinity’s work in Spain, which would fuel the EU battery and automotive sector.
As per the release, AVERE – the European Association for Electromobility specifically mentioned the Infinity’s project in Spain as a potential solution for the industry coupled with fully integrated and environmentally friendly aimed operations. Recently, Volkswagen announced last month:
“it has set itself the goal of promoting lithium production in Europe in the medium term – there are relevant deposits in Central and Southern Europe”.
Reportedly, Roskill Information Services, consulting and research company with more than 50 years’ experience in metals, and specialising in battery metals such as lithium also mentioned specifically about Infinity’s project in Spain.
“The development of localised supply chains in the lithium industry, such as in Europe, would provide advantages economically, environmentally and geopolitically to the supply chains of battery manufactures in the region. Lithium projects, such as Infinity Lithium’s San Jose in Spain, could provide a localised source of lithium raw materials to the European supply chain, supporting the growth of the battery manufacturing industry”.
The performance of the company’s stock in the past one-year is -21.59%, and its year-to-date return is +15%.
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