LPI is pleased to advise that it is considering a range of options regarding its Western Australian assets (Pilbara and Greenbushes), including the potential disposal of the assets, joint venture arrangements or spinning out the assets into a newly listed vehicle. It has recently received approaches from two potential transaction partners with respect to the assets and from time to time engages in confidential discussions with other parties as part of its regular business activities.
The article refers to estimated valuations of LPI's Western Australian Projects. LPI advises that there is no basis upon which that valuation was determined and that these statements contained in the article should be disregarded. Investors should not rely on these estimated valuations for their investment decisions.
The Company wishes to emphasise that there is currently no actual or proposed transaction with respect to its Western Australian assets and that the Company is considering various options for the development or monetisation of those assets as part of its regular business activities. In any event, no transaction for those assets may eventuate and no determination has been made by the Board with respect to any potential transaction.
LPI further updates the market on the progress of the sale of its Centenario project to Albertson Resources (as previously disclosed to ASX). The transaction is currently due to close on or before 30 April 2018. In the event that the transaction does not close by this date, the parties will explore options which may include an extension of the closing date or a joint venture. LPI advises that no agreement has been reached with Albertson Resources with respect to these options and will update the market as and when required.
Finally, the Company advises that the non-binding Memorandum of Understanding with Fulin Group that was disclosed to the ASX in November 2017 has recently expired. The Company remains in discussions with Fulin Group and regularly receives unsolicited inquiries from other potential offtake, project funding and/or construction funding partners as part of its normal business operations.
However, the Company does not have the present need, or intention, to enter into arrangements with funding joint venture or offtake partners and as previously disclosed to ASX is fully funded through to the final investment decision at Maricunga.
Upon making the final investment decision, the Company will seek appropriate project funding to finance the construction of Maricunga. As disclosed in the Preliminary Feasibility Assessment, released in January 2018, the estimated cost of construction for the Maricunga project is US$360m. To date the Company has received several unsolicited informal inquires to fund the construction of the Maricunga, however the Company does not intend to further progress these inquires until the completion of all matters leading to the finalisation of the Definitive Feasibility Study.
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 (PLS.ASX) and Altura Mining (AJM.ASX) 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).
ContactMartin C Holland - CEO
P: +612 9276 1245
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