Lithium ION Energy Ltd. (TSX-V:ION, OTCQB:IONGF) announced it has entered into a binding joint venture agreement with SureFQ to advance its Urgakh Naran lithium project in Mongolia.
As part of the agreement, ION will retain a 20% free-carried interest in the project through to commercial production, while SureFQ, a direct lithium extraction operator, will provide modular capacity.
The deal includes $5.5 million in cash payments to ION over 4.5 years and $8 million in development expenditures for the project over four years.
ION will also maintain a 2.5% net smelter return (NSR) royalty in perpetuity.
"This milestone is a testament to the ION team's perseverance to deliver upon a strategic partnership that ensures the advancement of our UN asset at a time of historical low lithium prices,” said Ali Haji, CEO of ION.
“We continue to see Urgakh Naran as an asset with significant potential and are excited to bring on a partner with proven technology that ensures revenue generation expeditiously.”
Separately, ION said it has reached a debt settlement agreement with certain creditors, issuing 3 million common shares at $0.04 per share to settle $120,000 in outstanding debt.
The company also announced it will no longer pursue a previously planned business combination with United Rare Earths, citing a strategic review by its board. ION said it continues to evaluate lithium and critical metals projects that align with its objectives.