Appian Capital enters Brazil's lithium segment with royalty deal

British investment firm Appian Capital Advisory LLP reached an agreement to enter Brazil’s lithium segment.

The firm concluded a royalty agreement with Lithium Ionic, owner of the Bandeira project in Minas Gerais state.

"Lithium Ionic Bandeira Corp. has executed a definitive royalty agreement with ANRF LI (JSY) Ltd., an affiliate of Appian, granting a 2.25% gross revenue royalty in exchange for upfront cash consideration of US$20mn," the Toronto-based junior said in a statement.

"Lithium Ionic intends to use the proceeds from the royalty to advance the development and construction of its world-class Bandeira lithium project."

Appian already has interests in Brazil’s nickel, copper and cobalt segment though Atlantic Nickel; the country graphite segment through Graphcoa; and in copper and gold through Mineração Vale Verde.

The Bandeira project is located in Brazil’s so-called Lithium Valley where Companhia Brasileira de Lítio (CBL), Sigma, Atlas Lithium, Latin Resources and Deep Rock are also active.