- Lithium Power International (LPI) completes a share purchase agreement with Canadian-based company Vertex Lithium
- As part of this agreement, Vertex has acquired 70 per cent of LPI’s lithium exploration properties on the Centenario Salar in Argentina
- LPI has held Centenario since its IPO in 2016 but agreed to the sale as its focus has primarily been on developing its flagship Maricunga lithium brine project in Chile
- The agreement consisted of a US$700,000 (A$968,957) cash payment for the properties as well as US$40,000 (A$55,369) to cover the transaction costs
- LPI is down 5.1 per cent on the market with shares trading at 46.5 cents
Lithium Power International (LPI) has completed a share purchase agreement with Canadian-based company Vertex Lithium.
As part of this agreement, Vertex has acquired 70 per cent of LPI’s lithium exploration properties on the Centenario Salar in Argentina.
LPI has held Centenario since it was established and was part of the company’s successful initial public offering (IPO) in June 2016.
The company agreed to the sale as its focus has primarily been on developing its flagship Maricunga lithium brine project in Chile.
The agreement consisted of a US$700,000 (A$968,957) cash payment for the properties as well as US$40,000 (A$55,369) to cover the transaction costs.
Due to the delay of Vertex’s IPO on the Toronto Stock Exchange (TSX), LPI has agreed to a cash payment of US$200,000 (A$276,845) in lieu of C$250,000 (A$272,955) worth of Vertex shares.
“This completion of the transaction with Vertex provides LPI with an immediate value for our holding in Centenario, a project which the company assesses, in 2018-19, to have little medium-term development potential,” CEO Cristobal Garcia-Huidobro said.
“The finalisation of this transaction allows LPI to focus on the development of our flagship Maricunga lithium brine project in Chile, with its revised definitive feasibility study due to be released shortly.”
LPI was down 5.1 per cent on the market with shares trading at 46.5 cents at 12:03 pm AEDT.