Infinity Lithium (ASX:INF) said the Directorate General of Industry, Energy and Mines under Extremadura's regional government in Spain gave it feedback regarding its mining license application for the San Jose lithium project lodged on June 13, 2024, according to a Friday Australian bourse filing.

The mines department asked the firm to either clarify or expand upon certain items in the application before the public consultation process, which is now expected to be conducted in late 2025. The authorities also want to add certain items to the submission, which had not been previously requested.

The department also requested the firm to repeat all metallurgical test work using a certified chain of sample custody and certified Spanish laboratories under mining law in the country. The firm is currently working with Spanish laboratories to develop the necessary skills to carry out such testing, according to the filing.

It also withdrew from Spain's PERTE, or Strategic Projects for the Recovery and Economic Transformation, grant program. Its request for an extension to the time allowable to use the grant was unsuccessful, it said.

The funds were allocated for capital equipment purchases and were partly in possession of the firm in escrow accounts.

It started the process of seeking funding in a new round of grants and it was invited to apply for a different, and larger suite of government grants, after consultation with authorities.

The firm was given up to 9 months to complete and submit additional information.

Its shares fall over 3% in early trading on Friday.