- US$5.5M paid to the Maricunga Joint Venture (the "JV") in relation to the continued development of the Maricunga lithium brine project.
- Total paid up capital to date to the JV of US$17.7M has secured LPI 32.5% of the Maricunga project leaving 17.5% to be completed.
With the further payment of US$5.5M, LPI has now contributed US$17.7M into the JV, in return for 32.5% paid-up capital, with the remaining 17.5% being unpaid capital and to be paid under the terms of the JV Investment Agreement.
This milestone secures LPI ownership of the project, without any claw back provisions, as reflected in the JV Investment Agreement.
The remaining US$9.5M (17.5%) is to be paid at LPI's call in four tranches (see the link below).
The first tranche of US$2M is to be paid in November 2017 from current cash reserves and the balance throughout 2018, to finalise the Company's contribution to 50% ownership of the JV. This would represent a total of US$27.2M having been paid by LPI into the Maricunga JV over a 24-month period. At the completion of the final tranche by the Company, all JV shareholders are required to contribute proportionally in accordance to their shareholding.
Lithium Power International's Chief Executive Officer, Martin Holland, commented:
"We are pleased to have secured the Company's 32.5% share in the Maricunga JV. This percentage ownership is now fixed without any form of claw back associated with our invested funds".
Maricunga JV Background
The Maricunga lithium brine project is regarded as one of the highest quality undeveloped preproduction lithium brine project globally, with a very high lithium grade and strong flow rates. The company continues to advance towards a new JORC compliant resource estimate in 1H17, based on results of the drilling & pump testing program, with the project progressing to a Pre-Feasibility study in December 2017.
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About Lithium Power International Ltd
Lithium Power International Limited (ASX:LPI) (FRA:24L) is a pure-play lithium explorer and developer, focusing on developing and fast-tracking to production the high-grade Maricunga lithium brine project in Chile.
LPI has a well known performing technical team with the experience to take the Maricunga project all the way through the development stages to production.
The regions that LPI is currently focussed on are:
1. Maricunga JV (Chile) – On 13th September 2016, Lithium Power announced the creation of a new JV to develop the world-class Maricunga lithium brine deposit in northern Chile.
2. Pilbara (Western Australia) – LPI has one granted exploration tenement and two pending exploration applications covering 203km2 in the Pilbara region of northern Western Australia. The largest granted exploration tenement is at Pilgangoora-Houston Creek is 2-3km west of the Pilbara Minerals (ASX:PLS) and Altura Mining (ASX:AJM) lithium deposits.
3. Greenbushes (Western Australia) – LPI has two granted exploration tenements covering 400km2 in the Greenbushes area of southern Western Australia. The tenements are adjacent to the world’s largest hard rock lithium mine owned & operated by Tianqi/Talison.
4. Centenario (Argentina) –Through its Argentinian subsidiary, Lithium Power holds a total of 6 granted tenements in the Centenario lithium brine salar within the Salta province of the Puna Plateau. In total, the 6 granted tenements cover an area of 61.52km2. In addition, there is 1 further tenement in the grant review stage.
With the exception of the Maricunga JV, all tenements are 100% owned by LPI or LPSA (including rights to the Centenario tenement which is the subject of review by the Argentinian mining authorities).
Lithium Power International Ltd