Infinity Lithium Corporation Ltd (ASX:INF) (FRA:3PM) is divesting its potash assets in Gabon allowing it to fully focus on the San José Lithium Project in Spain which will be part of Europe’s developing lithium-ion battery supply chain.
The binding sale agreement for the non-core asset comes as Infinity Lithium continues to streamline activities to focus firmly on lithium and the San José project.
Sole focus on San José
Raw materials and battery-grade lithium chemicals have been acknowledged as essential components in the European Union’s ambition to develop an integrated lithium-ion battery supply chain.
The company considers that maintaining a structure with the sole focus being the Spanish lithium project will assist greatly with attracting potential European funding.
“Absolute focus and attention”
Infinity Lithium managing director Ryan Parkin said: “Infinity has previously announced its intention to divest the Gabon assets and is focused solely on the lithium industry and the San José lithium deposit in Spain.
“This warrants our absolute focus and attention. Having a deal structure which can deliver real value through removing costs for Gabon allows us to add value in Spain.”
The company had previously signed a Letter of Intent for the sale of its wholly-owned subsidiary Equatorial Potash Pty Ltd (EPPL) and its Gabonese potash assets.
This option agreement was terminated prior to the new agreement as the option holder was in breach of terms and conditions.
Binding sale agreement
Infinity then entered into a binding sale agreement of the Gabonese potash assets to Meridian Drilling Inc.
This agreement will remove costs associated with the potash assets and is subject to a due diligence period of 14 days.
Infinity owns 100% of the Banio Potash Project as well as an application for the Mamana Potash Project.
The company acquired these potash assets prior to becoming involved in the San José Lithium Project.
This sale compliments the relinquishment of INF’s tungsten assets in 2019.