Update on Centenario Lithium Project Sale
LPI entered into binding contracts on 4 December 2017 with the Purchaser to sell 100% of the shares in Lithium Power International Holdings (Argentina) Pty Ltd ("LPIH") (the "Transaction"). LPIH is a wholly owned Australian subsidiary that holds the Company's interest in the Centenario Project.
LPI granted the Purchaser two extensions to the completion date, which were announced to the ASX on 2 May 2018 and 16 May 2018. Completion of the Transaction was scheduled to occur on 14 June 2018.
During this period, the Company advanced its exploration of the Centenario Project and continued to develop other aspects of the asset.
LPI now advises that the Purchaser was unable to complete the Transaction on 14 June 2018.
Accordingly, pursuant to the terms of the Transaction documents, LPI will retain the approximately $1.15 million in cash received from the Purchaser, and it will transfer to the Purchaser shares representing 30% of the total issued capital of LPIH.
The Centenario Project will become a 70:30 joint venture between LPI and Centenario Lithium. LPI intends to continue discussions with the Purchaser regarding a potential transaction involving LPIH in the future, along with further advancement of the project.
Potential Disposal of Non-Chilean Assets
Further to LPI's announcement of 12 April 2018, the Board is evaluating a range of options for its Pilbara and Greenbushes assets in Western Australian and its interest in the Centenario Joint Venture.
These possible options include the potential disposal of some or all the non-Chilean assets, joint venture arrangements or spinning out of all or some of the non-Chilean assets into a newly listed vehicle on either the ASX or another securities exchange.
The Company will update the ASX with regards to any transaction in accordance with its continuous disclosure obligations.
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