Infinity Lithium Corporation Ltd (ASX:INF) has begun an evaluation of dual-listing on the largest and most international of Spain’s four regional stock exchanges, the Madrid Stock Exchange or the Bolsa de Madrid (BME).
This reflects the company’s aim of more fully aligning its San Jose Lithium Project in Spain with European capital and shareholders.
The BME has a combined market capitalisation in excess of €750 billion (or more than $1.2 trillion) and in 2018 Spain’s gross domestic product growth rate of 2.6% outperformed Germany (1.5%), France (1.7%) and the United Kingdom (1.4%).
San Jose joint venture partner Valoriza Mineria is a wholly owned subsidiary of a BME-listed and IBEX35 company with a market capitalisation of more than €1 billion.
Discretionary bonus for directors
The company has also awarded executive directors who spearheaded its positive pre-feasibility study a discretionary bonus awarded in shares.
Designed in alignment with value creation and shareholder returns, the discretionary bonus is a revised performance-based incentive scheme to provide for a proportion of executive directors’ renumeration.
To incentivise directors, the board has agreed to issue 10 million share appreciation rights under a proposed appreciation rights scheme.
The company will include this as a part of the revised package for approval at the upcoming annual general meeting.
“Company in an outstanding position”
Speaking on the discretionary bonus for the PFS’ delivery, Infinity Lithium chairman Kevin Tomlinson said: “I am delighted with the progression of the San Jose Lithium Project within a rapidly evolving European strategic market and the delivery of an exceptional pre-feasibility study with an accompanying increase in project ownership to 75%.
“The executives have placed the company in an outstanding position to progress technical and market driven deliverables as the project continues to become increasingly aligned to European Commission objectives, thereby alleviating the significant lithium chemical supply exposure to Chinese converters and surety of the burgeoning EU electric vehicle market.”
Milestone to be reached
Executive directors Ryan Parkin and Vincent Ledoux Pedailles will be issued fully paid ordinary shares upon reaching a series of milestones for:
Successfully securing a material offtake contract for lithium chemicals, and
Obtaining a material strategic investment from related battery and/or automotive industry participants that advance the San Jose Lithium Project.
The discretionary bonus will apply to material improvements of shareholder value such as increasing project economic benefits in future studies, permitting advancement and M&A activity.
PFS builds on earlier scoping study
San Jose’s PFS is based on a 30-year operational life with US$267.9 million earmarked for pre-production capex.
The PFS combines a long-life, low-cost open pit or quarry operation with an on-site processing plant within 2 kilometres of the resource.
Potential tin and boron credits are available and are being assessed in the ongoing optimisation studies.
Additional work is required to define a value of the potential by-product credits, or if it would be economic to extract value from these credits.
“Unique sustainability characteristics"
Executive director Ryan Parkin added: “The project presents the potential for exceptional multi-decade employment positions and tax revenues that are largely retained within the region of Extremadura.
“[It’s] also providing a world class beacon for complementary activities in lithium-ion battery production and technologies in the region and throughout Spain.
“San José retains unique sustainability characteristics that further complement Europe’s aggressive carbon emissions compliance requirements through the implementation of an environmentally advantageous process flowsheet and superior carbon emissions profile for European end markets.”