Update - Argentine lithium sale
As announced on 2 May 2018, the completion date of the Transaction was extended from 30 April 2018 to 14 May 2018.
The Company and the Purchaser have now agreed a further extension to 14 June 2018.
On completion, the Purchaser will be required to pay A$3M to the Company or up to A$3.25M in cash and shares in the Purchaser if the Company elects to receive a mix of cash and shares, as detailed below.
In conjunction with agreeing to extend the completion date of the Transaction, the parties have agreed that:
- the Purchaser paid on the 15th May 2018 to LPI an amount of A$120,000 as reimbursement for certain expenses and A$25,000 in additional legal fees in connection with the Transaction;
- up to 50% of the completion payment may be paid by the issue of shares in the Purchaser, at the election of the Company. The remainder of the purchase price (no less than 50%) must be settled by the payment of cash to the Company. If the Company elects to receive shares, the issue price will be the share price at which the Purchaser undertakes its next private capital raising;
- LPI has the right to accept 100% cash at completion; and
- in addition, the Purchaser will issue 1.25 million shares to the Company at an issue price of $0.10 per share, for the Company allowing this extension.
The Company has commenced gravity and electromagnetic geophysical surveys over the Centenario project in May 2018. The Company has engaged Quantec Geoscience Argentina SA to carry out this work. The cost of the geophysical survey work has been reimbursed by the Purchaser.
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