Lithium Power International Ltd uploaded a Corporate Update
March 16, 2023
Interim Report 31 December 2022
Highlights:
REVIEW OF OPERATIONS
- The loss for the consolidated entity after providing for income tax and non-controlling interest amounted to $5,615,324 (31 December 2021: $7,313,541).
CORPORATE
- Salar Blanco SpA (‘MSB SpA’) and Bearing Lithium Corp (‘Bearing’) (collectively, the ‘JV Partners’), agreed to a three-party consolidation of ownership of the Maricunga Lithium Brine Project (the ‘Project’) in Chile (the Maricunga Joint Venture (‘JV’)), to de-risk the development and to create a simple and transparent investment entity. It involved MSB SpA, which owned a 31.31% stake in the project, and Bearing, with 17.14%, exchanging their interests for shares in LPI. On 23 December 2022, the all-scrip merger was completed.
- These transactions increased the proportionate interest of LPI’s previous shareholder base in Maricunga from 51.55% to 57.9%.
- The consolidation was also designed to enhance the ability to raise development capital for the project. A share placement was made in September 2022, raising $25 million to accelerate progress at Maricunga.
- The financing process for Maricunga continued, with non-binding term sheets being evaluated by interested parties.
- The demerger and subsequent planned listing of LPI’s Western Lithium Ltd subsidiary was deferred until after the Maricunga consolidation was completed.
MARICUNGA LITHIUM BRINE PROJECT – CHILE
- An acquisition of water rights was made for the Project.
- Samples of brine from Maricunga were processed, yielding 99.92% pure battery grade lithium carbonate.
- Samples were sent to potential buyers to support financing plans for the development
WESTERN AUSTRALIA
- LPI became the largest tenement holder in the Greenbushes region of Western Australia, expanding its prospective ground held near the Talison lithium mine.
- Additional tenements were acquired to cover potential lithium projects in the Eastern Goldfields and Pilbara regions of Western Australia.