Quarterly Activities Report
Sydney, Jan 25, 2018 AEST (ABN Newswire) - Lithium Power International Limited (
ASX:LPI) (LTHHF:OTCMKTS) ("LPI" or "the Company") is pleased to submit this Quarterly Activity Report for the period ended 31 December 2017.
HIGHLIGHTS
- Outstanding economic outcomes announced from the Preliminary Economic Assessment (PEA) for the Maricunga Lithium Brine project in northern Chile. These included an ungeared IRR of 23.4% and a project NPV of US$1.05 billion before tax, at an 8% discount rate and based on a project life of 20 years.
- Forecast project operating costs would place Maricunga among the most efficient global lithium producers, with lithium carbonate production costs of US$2,938 per tonne FOB, reducing to US$2,635/t with credits from a potassium chloride fertiliser (KCl) by-product.
- Process test work for Maricunga continues, with final results of the first LCE production pending, using expert equipment suppliers Veolia and GEA to optimise the lithium extraction process.
- Site visits to Maricunga were conducted with several groups of investment analysts. Canaccord, Sprott Asset Management and other analysts now cover LPI as progress is made towards completing a feasibility study due in Q3 2018.
- A non-binding MOU with Chinese motor vehicle manufacturer Sichuan Fulin Industrial Group Co Ltd (Fulin) has been executed for potential project equity participation and off-take agreement. A technical and legal due diligence process has been conducted by Fulin which was completed in January 2018. Further discussions are to be held in February 2018.
- LPI's and MSB's boards have approved advancing the project to a Definitive Feasibility Study.
- The company successfully raised A$35.6 million. This comprised a heavily over-subscribed A$15m offering to new institutional, existing and sophisticated investors fully underwritten by Canaccord Genuity (Australia) Limited, in conjunction with a fully underwritten placement of approximately A$20.6m via the exercise and underwriting of the listed LPIO options which had an exercise price of A$0.55 each.
- A contract was finalised with Centenario Lithium Limited to buy the Centenario lithium project in Argentina for A$4 million in cash. The sale included a 1.5% gross royalty on future production to LPI. An initial A$1 million has been received, with the balance to be paid at completion of the transaction on or before 30 April 2018. The purchaser may elect to pay the balance in a combination of cash and shares, which will attract a A$250,000 premium on the total purchase price to total A$4.25 million.
To view the full report, please visit:
http://abnnewswire.net/lnk/KV92XVAA
About Lithium Power International Ltd
Lithium 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.
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