Lithium Power International Ltd Stock Market Press Releases and Company Profile
Sale of Centenario Lithium Properties in Argentina Agreed
Sale of Centenario Lithium Properties in Argentina Agreed

Sydney, Dec 4, 2017 AEST (ABN Newswire) - Lithium Power International Limited (googlechartASX:LPI) (googlechartLTHHF:OTCMKTS) ("LPI" or "the Company") is pleased to provide an update on the sale of its interest in its Argentine lithium project situated in the Centenario salar.

Highlights

- Long form transaction documentation executed after successful completion of due diligence

- LPI has received A$1M of the purchase price, completing the initial payment

- Balance of funds due on or before 30 April 2018

As announced on 7 September 2017, the Company entered into a Term Sheet with Albertson Resources Pty Ltd to dispose of 100% of the shares in Lithium Power International Holdings (Argentina) Pty Ltd, LPI's wholly-owned Australian subsidiary that holds LPI's interest in the Centenario project (the "Transaction").

Following a successful due diligence process, LPI is pleased to advise that it has entered into binding contracts with Centenario Lithium Limited (the "Purchaser"), the nominee of Albertson Resources Pty Ltd, to effect the Transaction.

The Purchaser has advanced a total of A$1M to LPI to complete its initial payment obligations under the Transaction documentation.

The Transaction is scheduled for completion on or before 30 April 2018. At completion, the Purchaser will be required to pay an additional A$3M in cash to the Company.

In certain circumstances (involving a successful fundraising by the Purchaser), the Purchaser may elect to make the completion payment via paying LPI A$1.75M in cash and A$1.5M in shares of the Purchaser (at the price implied by the successful fundraising), which could result in a $250,000 premium for LPI.

The cash price will be reduced by $250,000 in the event that a specified tenement is not transferred to the target group.

In addition, the Purchaser is required to:

- pay to LPI a success fee of $375,000 on announcement of a maiden JORC resource above of at least 250,000 tonnes of lithium carbonate equivalent; and

- grant to LPI a royalty of 1.5% on gross revenues earned from Centenario for a period of 20 years commencing on the date of finalization of a definitive feasibility study.

Lithium Power International's Chief Executive Officer, Martin Holland, commented:

"The Board of LPI is pleased to announce execution of the Transaction documentation following successful completion of Centenario Limited's due diligence on Centenario and receipt of advance payment of a total of A$1M in cash. The smooth due diligence process has led to the parties to agree to proceed with the Transaction. This is a positive sign for the Centenario project and LPI, and we look forward to completing the Transaction with the Purchaser in early 2018."


About Lithium Power International Ltd

Lithium Power InternationalLithium Power International Limited (ASX:LPI) is a pure play lithium company with three distinct project regions to provide diversification. One is located in South America's brine region and three are in Australia's spodumene hard rock areas of Western Australia.

The primary focus is to develop of Chile's next high-grade lithium mine on the Maricunga Salar in an area known as the Lithium Triangle. The Company has also expanded its tenement holdings of lithium exploration prospects in Western Australia.

https://twitter.com/LithiumPowerLPI https://www.linkedin.com/company-beta/17892940?pathWildcard=17892940 abnnewswire.com 


Contact

Martin C Holland - CEO
Lithium Power International
E: info@lithiumpowerinternational.com
T: +61-2-9276-1245
www.lithiumpowerinternational.com
Twitter: @LithiumPowerLPI



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