European-based, South American producer AMG Lithium GmbH, a subsidiary of AMG Advanced Metallurgical Group N.V (AMS:AMG) (FRA:ADG) has lodged a ‘next-in-line’ exploration licence application over areas including, but not limited to, the grounds situated over the San José Lithium Project investigation permits.
Infinity managing director Ryan Parkin said: “Lithium and other critical raw materials exploration activities in the Iberian Peninsula have increased greatly in recent months.
“With the availability of lithium chemicals remaining an essential component in the EU’s ambitions to develop their lithium-ion battery supply chain, interest within the EU has increased greatly.”
Early mover advantage
Infinity said the AMG application highlighted the value and imperative of the San José development as a major component in the EU’s ambitions to develop a localised lithium-ion battery supply chain.
Parkin said: “The San José Lithium Project has the potential to provide battery-grade lithium hydroxide within the EU.
“The project’s right to the areas in application and subsequent potential progression to exploitation concession have ranking priority through the applications lodged following the tender process which began in 2015 and Infinity’s own involvement in the JV since 2016 highlighting Infinity’s early mover advantage.”
Next in line
Under Spanish mining law and as per mining regulations in many countries, other parties with an interest over the project area can make applications for exploration activities, however, these subsequent applications sit ‘next in line’ with a lower priority to the original applications.
Infinity and Spanish JV partner retain full interest and rights through San José Lithium Project company Tecnolgia Extremena Del Lito (TEL), with permit applications including the PI Valdeflórez and PI Ampliación a Valdeflórez and an exploration licence application lodged by Infinity’s wholly-owned subsidiary Castilla Mining S.L. [ED1]
These applications all pre-date the application made by AMG Lithium and have priority over subsequent applications.
Infinity’s wholly-owned subsidiary Extremadura Mining S.L. secured 75% ownership interest in TEL in Q1 2019 and retains an option to acquire the balance of the project from Valoriza Mineria S.A., a wholly-owned subsidiary of Madrid listed and IBEX35 company Sacyr S.A.
Late last year Infinity was selected to apply for funding via the European Battery Alliance’s (EBA) Business Investment Platform (BIP) which will provide around €20 billion from 2019 to 2023 for accelerated investment in the EU lithium-ion battery value chain, including projects in mining, refining and recycling such as the San José project.
The BIP funding initiative is in addition to funding available through the EBA’s private investment arm, InnoEnergy – through which funding can be applied to a maximum of €7 million over three years under the InnoEnergy Innovation Projects Investment facility.
Infinity presented to the Board of InnoEnergy and a selected committee in December, the final step of the selection process prior to the final investment decision to support bench-scale test work and modular pilot plant.