- Lithium Power International (LPI) plans to consolidate 100 per cent ownership of the Maricunga brine project in Chile via a three-party all-scrip merger
- The company currently owns 51.55 per cent of the project and will purchase the remaining interest from its joint venture partners, Minera Salar Blanco and Bearing Lithium
- Consideration will be paid via LPI shares and has been unanimously endorsed by the boards of all companies involved in the transactions
- The move will increase shareholders interest in Maricunga to about 57.9 per cent and will simplify decision making to accelerate development of the project
- Shares are trading 5.48 per cent higher at 38.5 cents each at market close
Lithium Power International (LPI) has planned to consolidate 100 per cent ownership of the Maricunga brine project in Chile via a three-party all-scrip merger.
The company currently owns 51.55 per cent of the project and will purchase the remaining interest from its joint venture partners, Minera Salar Blanco and Bearing Lithium.
Consideration will be paid via LPI shares and has been unanimously endorsed by the boards of all companies involved in the transactions, however, LPI shareholder approval will be needed for the transactions to proceed.
The move will increase shareholders interest in Maricunga to about 57.9 per cent and will simplify decision making to accelerate development of the project.
In addition, LPI said it will become easier to access funding, as it can source capital from a wider range of providers in the lead up to a final investment decision.
Chairman David Hannon said the ownership will allow it to drive long-term value for shareholders.
“The updated DFS released on 20 January 2022 demonstrates that Maricunga could be one of the lowest cost producers of lithium carbonate in the world, with the project’s strong economics underpinning a highly attractive asset,” he said.
“This transaction is a highly logical step for LPI. By assuming full control of the Project, LPI will create a strong platform from which to develop and fund Maricunga.”
Shares were trading 5.48 per cent higher at 38.5 cents each at market close.