- Lithium Power International (LPI) enters an agreement with Albemarle Lithium to sell its Australian subsidiary Western Lithium (WLI) for $30 million
- The company was “well advanced” in the demerger of WLI from LPI and listing of WLI on the ASX, but the board decided that the new deal was “better value”
- LPI CEO Cristobal Garcia-Huidobro says the deal provides an “immediate realisation of value” for Western Lithium
- Completion of the deal is expected around July 3
- LPI shares last traded at 32 cents
Lithium Power International (LPI) has entered an agreement with Albemarle Lithium to sell its Australian subsidiary Western Lithium for $30 million.
Despite being “well advanced” in the demerger of WLI from LPI and subsequent new listing of WLI on the ASX, the board decided that the new deal and “attractive” cash offer was “better value”.
LPI CEO Cristobal Garcia-Huidobro said this deal provides an “immediate realisation of value” for Western Lithium.
“It will add significant cash to the company’s balance sheet and is non-dilutionary to LPI shareholders, as the financing process of our flagship Maricunga project in Chile continues moving forward,” he said.
The transaction includes $29 million to be received at completion, while a further $1 million will be received only if specific tenement applications are granted within 18 months of completion.
Completion of the deal is expected around July 3.
LPI shares last traded at 32 cents.