HIGHLIGHTS
- LPI to consolidate 100%ownershipof the Maricunga brine project, byway ofa three-party all-scrip merger with its JV Partners MSB SpA (owner of 31.31% of Maricunga) and TSXV listed Bearing Lithium (17.14%)
- TheTransactionsincreasethecurrentLPIshareholders’proportionateinterestinMaricunga fromthecurrent51.55%to~57.9%1
- LPIwillconsolidatethe~48.45%oftheProjectthatitdoesnotcurrentlyownatavaluation whichisadiscountof~17.1%2comparedwithLPI’scurrentlookthroughvalueofMaricunga
- LPI holding 100% ownership of the Project will simplify decision-making and provides the optimal structure to oversee the rapid development of Maricunga
- Consolidation of 100% of the Project’s ownership will de-risk the funding pathway and enhanceLPI’sabilitytosourcecapitalforthedevelopmentofMaricungafromawiderrange of providers when compared with the existing joint venture ownership structure
- ConsiderationwillbepaidinLPIsharestherebyallowingtheshareholdersoftheJVPartners to retain exposure to the NPV8US$1.4b Project3
- The Transactions have been unanimously endorsed by the Boards of LPI, Bearing and MSB SpA, with the LPI Board (other than Mr Martin Borda who abstained due to him being the ultimate controller of MSB SpA) recommending that LPI shareholders vote in favour of the Transactions at the upcoming shareholder meeting
SYDNEY, Australia, June 22, 2022 (GLOBE NEWSWIRE) -- Lithium Power International Limited (ASX:LPI) (“LPI” or the “Company”) is pleased to announce it has entered into definitive binding agreements to consolidate 100% ownership of the Maricunga Lithium Brine project in Chile (“Maricunga” or the “Project”) via two all scrip mergers with its joint venture partners Minera Salar Blanco SpA (“MSB SpA”) and Bearing Lithium Corp. (BRZ:TSXV) (“Bearing”) (together the “JV Partners”) (individually the “Transaction” or together the “Transactions”).
To read the company’s full ASX release in this regard, please click here.
LithiumPower’sChairman,DavidHannon,commented:
“We are extremely pleased to have reached an agreement with both MSB SpA and Bearing to consolidate 100% ownership of Maricunga. The updated DFS released on 20 January 2022 demonstratesthatMaricungacouldbeoneofthelowestcostproducersoflithiumcarbonateinthe world, with the Project’s strong economics underpinning a highly attractive asset.
ThistransactionisahighlylogicalstepforLPI.ByassumingfullcontroloftheProject,LPIwillcreatea strongplatform fromwhichtodevelopandfund Maricunga.Welookforwardtocontinuingtodeliver long-term value for all LPI shareholders, including MSB SpA and the new Bearing shareholders.”
Forfurtherinformation,pleasecontact:
CristobalGarcia-Huidobro–CEO;orAndrewPhillips–CFOLithiumPowerInternational
E: info@lithiumpowerinternational.com Ph: +612 9276 1245
www.lithiumpowerinternational.com
@LithiumPowerLPI
JaneMorgan–InvestorandMediaRelations
+ 61 (0) 405 555 618
jm@janemorganmanagement.com.au
For U.S. and other international investor relations enquiries:
ArrowheadBusinessandInvestmentDecisions,LLC
Thomas Renaud | Managing Director 42 Broadway, 17th Floor
New York, NY 10004 Office: +1 212 619-6889
enquire@arrowheadbid.com
1 Based on diluted proforma ownership of LPI assuming LPI 1M VWAP share price as at market close on 21 June 2022 from IRESS.
2 Refer footnote 1 above.
3 Refer to the Company's ASX announcement entitled ‘MaricungaStageOneDFSdeliversanaftertaxNPVof US$1.4B’ dated 20 January 2022. The Company confirms that all material assumptions underpinning the production targets, and the forecast financial information derived from such production targets, in this Announcement, continue to apply and have not materially changed.
