As Infini Resources Ltd. gears up for its imminent Initial Public Offering (IPO), prospective investors are presented with a unique opportunity to delve into the company’s dual projects – Valor Project and Quebec Lithium Claims. In this comparative analysis, we examine key aspects of these projects from both Infini’s Prospectus and an announcement from FE Battery Metals Corp. to equip investors with valuable insights and a cautionary note.

1. Valor Project

Infini Prospectus Highlights:

• Ownership and Agreement: Infini, through its subsidiary Fleur de Lys Exploration Corporation, holds a 50% interest in the Valor Project as of June 30, 2023.
• Option to Acquire: Infini has a conditional and binding agreement with FE Battery Metals Corp. to acquire an additional 25% interest in the Valor Project.
• Consideration: Payments include a cash fee of A$150,000 and issuing A$150,000 worth of Consideration Shares for the initial 25%. For the remaining 25%, A$300,000 cash and A$300,000 in Shares are required.

FE Battery Metals Announcement Highlights

• Option and Joint Venture Agreement: FE Battery Metals and Infini Resources entered an Option Agreement for Infini to earn a 100% interest in 255 lithium claims in Quebec.
• Payment Structure: Infini can earn an initial 50% interest by making a cash payment of AUD$550,000. Further, additional payments and share issuances are outlined for acquiring the remaining 50%.

2. Comparative Analysis

• Payment Structures:
  • Infini Prospectus: Clearly outlines payments for each stage of acquiring interests.
  • FE Battery Metals Announcement: Provides a concise breakdown of payments for earning interests.
• Project Termination:
  • Infini Prospectus: No explicit details on project termination.
  • FE Battery Metals Announcement: Mentions that the Option Agreement may be terminated in certain circumstances.
• Ownership Proportions:
  • Infini Prospectus: Describes current ownership as 50%, with the option to increase by 25% twice.
  • FE Battery Metals Announcement: Highlights Infini’s initial 50% interest with an option to acquire the remaining 50%.

3. Cautionary Note

• While the Infini Prospectus provides a comprehensive breakdown of payments, investors should exercise caution regarding the termination circumstances of the Option Agreement. Understanding the conditions under which the agreement may be terminated is crucial for assessing potential risks.

As Infini Resources charts its course towards IPO, a dual exploration approach opens avenues for diversified investment. This comparative analysis serves as a guide for potential investors, offering clarity on the intricacies of the Valor Project and the Quebec Lithium Claims. Diligence and a nuanced understanding of the terms are key as investors navigate this promising venture:

Analysis of Valor Project Agreement: A Deep Dive for Prospective Infini Investors

This analysis breaks down the key components of the Valor Agreement to provide prospective investors with an in-depth understanding and an opinion on the investment outlook.

1. Initial Acquisition and Earn-In

• Acquisition of Valor Stage 1 Interest: Completed on November 16, 2022, with a substantial A$550,000 cash payment.
• Option for Additional 25% (Valor Stage 2 Interest): Infini has the option to acquire an additional 25% interest within 18 months for A$150,000 cash and A$150,000 in Shares.
• Option for Remaining 25% (Valor Stage 3 Interest): After acquiring the Valor Stage 2 Interest, Infini can secure the remaining 25% within 12 months for A$300,000 cash and A$300,000 in Shares.

2. Valor Earn-In Period

• The earn-in period concludes on the earlier of specific events, including Infini Québec withdrawing from the Valor Agreement, failing to acquire the Valor Stage 2 Interest, reaching the Valor Stage 3 End Date, or acquiring a 100% interest in the Valor Project.

3. Unincorporated Joint Venture (Valor JV)

• Establishment: Automatically formed upon Infini Québec acquiring the Valor Stage 1 Interest.
• Initial Interests: Both parties hold equal interests in the Valor JV based on their respective interests in the Valor Project.

4. Operations, Management, and Funding

• Management Structure: Infini Québec acts as the manager during the Valor Earn-In Period, followed by a Valor JV Management Committee. This committee can review and give directions to the manager.
• Funding: Both Infini and FEM contribute to expenditure on a pro-rata basis. Failure to contribute leads to dilution according to a predefined formula.

5. Withdrawal

• Infini has the option to withdraw from the Valor JV at any time by providing a 30-day notice in writing and surrendering its joint venture interest to FEM.

6. Royalty

• FEM is entitled to a 2% gross royalty on all minerals produced at the Valor Project.

Opinion for Prospective Investors

Infini’s Valor Project Agreement reflects a well-structured partnership with FEM. The staged acquisition model with clear earn-in options provides flexibility aligned with project milestones. The inclusion of a gross royalty, while common, necessitates careful consideration, as it impacts net profitability. Investors should closely monitor project developments, especially regarding the Valor Earn-In Period and any potential impacts on Infini’s contributions and joint venture interest. Overall, the Valor Project Agreement appears robust, offering investors a strategic entry into a promising venture with measured risk exposure. As always, thorough due diligence remains paramount in any investment decision.