Clarification to Chilean Media Release
These comments were in connection with the publication of Decree No. 64, which approves a future lithium special operation agreement (CEOL) between the Ministry of Mining in Chile and a subsidiary of a Chilean state-owned copper company Codelco.
Decree No. 64 authorizes the promotion, development and operation of lithium in certain areas of the Maricunga Salar brine until year 2057, setting the framework, minimum requirements and regulations for a CEOL to be executed.
It is noted that such agreement is yet to be executed between the Ministry of Mining and Codelco.
It is further noted that Decree No. 64 explicitly states that any future CEOL will not affect, in any manner whatsoever, any lithium concessions granted prior to 1979, under the "Old Code" mining regulations.
A significant proportion of MSB's properties, namely: Cocina, Salamina, Despreciada and San Francisco tenements are "Old Code" tenements, with only the Litio tenement classified as post 1979 "New Code". Refer to Figure 1 (see link below).
It is also advised that exploration has been conducted on all MSB tenements, with the results issued in the JORC and NI 43-101 complainant Resource Estimate and the Preliminary Economic Assessment remain a true reflection of the overall project.
MSB is confident that the Chilean government and all its entities will respect the rights of private entities, such as MSB, to participate in equitable conditions in the exploration and exploitation of lithium in the Maricunga Salar, within the in terms and conditions set forth in the Chilean Constitution, laws and applicable regulations.
MSB is confident that the new administration coming into office on 11 March 2018, will create all the required conditions to attract new investments in order to contribute to the progress and welfare of the country and all its people.
The judicial and social environment is what currently makes Chile an attractive jurisdiction for foreign investors.
Maricunga JV Background
The Maricunga JV is 50%-owned by Lithium Power International Limited. The project is regarded as one of the highest quality pre-production lithium brine project globally, with very high grades and exceptional porosity essential for high flow rates. The company released a Preliminary Economic Assessment for the project on 4 January 2018, which confirmed strong economic returns for production of 20,000t/a of lithium carbonate with production of 74,000t/a of potassium chloride from year 3 of the project.
To view figures, please visit:
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