The Infinity Lithium Corporation Ltd (ASX: INF) share price is skyrocketing today after the company provided a European funding update.
At the time of writing, Infinity Lithium shares are flying 91.67% higher to 11.5 cents per share. With this rise, Infinity Lithium's current market capitalisation stands at around $27 million.
Infinity Lithium is a minerals company focused on developing its 75%-owned San José Lithium Project and produce battery-grade lithium hydroxide in Spain.
The San José deposit is an advanced, previously mined brownfield development opportunity located in Extremadura, Spain. It is the second-largest JORC hard rock lithium deposit in the European Union (EU).
Why is the Infinity Lithium share price skyrocketing?
This morning, Infinity Lithium announced it has executed binding agreements for multi-stage funding from the EU-backed public-private partnership EIT InnoEnergy.
While Infinity Lithium revealed details of the funding in March, back then the deal was only at the memorandum of understanding stage.
Infinity's San José Lithium Project is the first lithium project in Europe to secure funding from EIT InnoEnergy. The funding includes a staged amount of up to €800,000 to support the project's first phase of feasibility study test work.
Following this, EIT InnoEnergy will leverage the European Battery Alliance (EBA) network to facilitate the funding for phase two, with an investment of up to €2.4 million. Phase two involves the construction of the pilot plant at San José.
This funding also comes with an assistance agreement to support fundraising activities for up to €300 million in debt and equity to fund the development of the San José project.
Commenting on today's update, managing director Ryan Parkin said:
"The Board of Infinity is delighted to announce the completion of these multi-level agreements, highlighted by the financial endorsement of the San José Project through the funding by EIT InnoEnergy."
"This multi-level collaboration will see San José benefit through exposure to EIT InnoEnergy and the EBA's vast European network as the EU focuses on the essential requirement to secure lithium chemicals and develop an integrated lithium-ion battery value chain."
