Lithium Power International has made significant progress on the planned consolidation of its Maricunga Lithium Brine project in Chile.
Lithium Power International (LPI) announced in June that it will acquire the stakes held by joint venture partners, Salar Blanco, LLC and Bearing Lithium Corp, to secure 100% ownership of its flagship Maricunga Lithium Brine project through two separate all-scrip merger transactions.
Currently, the company holds a 51.55% interest in Maricunga.
Salar Blanco transaction
During a meeting held on 28 October 2022, LPI shareholders approved the issue of consideration shares to the Salar Blanco (SBD) parent company.
A second court hearing is scheduled for 17 November 2022, regarding the Australian scheme of arrangement to merge LPI with SBD and consequently acquire SBD’s 31.31% interest in the Maricunga Lithium Brine project.
Following this and subject to approval by the Australian court, the transaction will become unconditional.
The company expects this entire transaction to be completed on or around 21 November 2022.
Bearing Lithium transaction
Bearing Lithium shareholders approved the plan for LPI to acquire its 17.14% interest in the Maricunga Lithium Brine project, during a meeting held on 28 October 2022.
Discussions are currently being held which may result in Bearing waiving the SBD condition as a closing condition to the Bearing transaction.
If waived, and subject to approval by the Canadian court, the transaction will become unconditional. Regardless of the outcome of the SBD transaction, the Bearing Transaction is expected to be completed on or around 7 November 2022.
However, if the SBD condition is not waived, the Bearing transaction is expected to close on or around 21 November 2022.
Stakeholder support for the consolidation of the lithium brine project
LPI chairman David Hannon said: “It is pleasing to see that the shareholders of both LPI and Bearing wholeheartedly support the consolidation transaction as is evidenced by the strong shareholder turnout and the overwhelming number of votes in favour of the respective aspects of the consolidation transaction.
“The consolidation of the project is a crucial milestone for LPI and its shareholders. The LPI board is excited to lead the company towards becoming a major global player. It will be a significant producer of high-grade lithium carbonate and deliver long-term value and sustainable growth for LPI’s shareholders.”