Veirano and TozziniFreire on PLS – Lithium Ionic Salinas deal

PLS Brasil Mineração, a wholly owned subsidiary of PLS Group Limited, has acquired Lithium Ionic Corp.’s Salinas group of lithium properties, including the Baixa Grande lithium resource, located in the State of Minas Gerais, Brazil. The deal, valued at an aggregate US$37.5 million, expands PLS’s presence in Brazil’s Lithium Valley region.

The transaction structure includes an upfront cash payment of US$30 million at closing and US$7.5 million in deferred consideration, payable upon the earlier of a positive final investment decision for PLS’s adjacent Colina Project or December 31, 2029. Lithium Ionic will retain a 2.0% royalty on future spodumene sales from the acquired mineral rights, calculated on an FOB basis. The acquisition allows PLS to integrate the Salinas properties, including the Baixa Grande deposit, with its neighboring Colina Project, creating potential development and operational synergies between the two assets.

Veirano Advogados acted as Brazilian legal counsel to PLS Group, advising on all Brazilian law aspects of the transaction including legal due diligence, transaction structuring, negotiation of the asset purchase agreement and royalty agreement, matters relating to the transfer of mineral rights and surface properties, and preparation of closing documentation.

The Veirano team was led by Pedro A. Garcia, partner in the Mining practice, together with Antonio Albani, associate, and lawyers Vinicius Mascarenhas and Matheus Teixeira, also from the Mining team. The firm’s Environmental practice was represented by Beatriz Frontin, partner, and Luiz Coelho, lawyer.

PLS Group was also advised on Canadian law matters by McCarthy Tétrault, with Adam Kanji, as part of the deal team.

Lithium Ionic Corp. was advised on Brazilian law by Tozzini Freire, with Oswaldo Noce Dalla Torre, Vinícius Villa Alvarez and Pedro Raposo Ferreira on the team, and on Canadian law by Cassels Brock & Blackwell LLP, with Cathy Mercer and Luciano Aguilera advising.

Pictured: Garcia and Torre