Lithium Power International Ltd

Highlights:

• Lithium Power International Limited (ASX: LPI) is progressing with a proposed scheme of arrangement for the acquisition of 100% of its share capital by Salar de Maricunga SpA, a subsidiary of Corporación Nacional del Cobre de Chile (“Codelco”), pending approval from the Foreign Investment Review Board (FIRB).
• The FIRB has requested an extension to the statutory deadline for decision-making, pushing the deadline from February 9, 2024, to March 1, 2024. LPI’s board remains optimistic about receiving approval and sees no foreseeable obstacles to the scheme’s implementation.
• In response to the FIRB’s extension request, LPI has successfully requested the Federal Court of Australia to reschedule the Second Court Hearing for scheme approval to 11:15 am (AEDT) on Monday, March 4, 2024. The updated indicative timetable outlines key dates, including the Effective Date, Scheme Record Date, Implementation Date, and Termination of official quotation of LPI Shares on ASX, indicating progress towards finalization of the acquisition process.

Highlights:

• LPI entered into a binding scheme implementation deed with Chilean mining company Codelco, pursuant to which it is proposed that a wholly-owned subsidiary of Codelco will acquire 100 percent of the share capital of LPI by way of a Scheme of Arrangement (“Scheme”).
• The terms of the Scheme stipulate that LPI shareholders will receive A$0.57 in cash per LPI share upon implementation of the Scheme, which is expected to occur on 23 February 2024 (assuming the Scheme is approved by the Court and other conditions to the Scheme are satisfied or waived).
• Subsequent to the Reporting Period, the resolution to approve the Scheme was passed by the requisite majorities of LPI shareholders at the Scheme meeting held on 23 January 2024.

Highlights:

• The proposed scheme of arrangement, where Salar de Maricunga SpA, a wholly-owned subsidiary of Corporación Nacional del Cobre de Chile (“Codelco”), will acquire all shares in Lithium Power International Limited (ASX: LPI), received approval from the requisite majorities of LPI Shareholders.
• Results of the Scheme Meeting indicate strong support, with 94.51% of LPI Shareholders present and voting in favor of the Scheme, and 99.54% of the votes cast by LPI Shareholders supporting the Scheme.
• The next steps involve the Scheme’s approval by the Federal Court of Australia at the Second Court Hearing scheduled for Tuesday, 13 February 2024. If approved, LPI intends to lodge the Court’s orders with the Australian Securities and Investments Commission on Wednesday, 14 February 2024, with the expectation that the Scheme will become effective on that date. The potential suspension of LPI shares from trading on the ASX is anticipated from the close of trading on Wednesday, 14 February.

• Lithium Power International Limited (ASX: LPI) is undergoing a scheme of arrangement where a wholly-owned subsidiary of Corporación Nacional del Cobre de Chile (“Codelco”), Salar de Maricunga SpA, will acquire 100% of LPI’s share capital.
• The Scheme Meeting, scheduled at 11:00 am (AEDT) today, will feature the Chairman’s address and a presentation, with LPI shareholders able to participate either in person at Ashurst Australia or online at https://web.lumiagm.com/330428612.

LPI provides an update on the proposed scheme of arrangement pursuant to which a wholly-owned subsidiary of Codelco will acquire all of the shares in LPI.

LPI confirms that the Australian Securities and Investments Comission has today registered the Scheme Booklet in relation to a proposal from Codelco to acquire all LPI shares by way of a recommended scheme of arrangement between LPI and its shareholders

Highlights:

The Federal Court of Australia has made orders for the convening of the Scheme Meeting and approving the dispatch of the Scheme Booklet.

The Scheme Meeting will be held at 11:00AM (AEDT) on Tuesday, 23 January 2024, in person and online.

The Scheme Booklet will be dispatched to LPI shareholders by Thursday, 21 December 2023.

Highlights:

• Join a conference call on October 18, 2023, hosted by LPI’s CEO, Mr. Cristóbal GarciaHuidobro, to discuss the acquisition of LPI shares by Codelco at A$0.57 per share.
• LPI has entered into a binding scheme implementation deed with Codelco, offering A$0.57 per share. Find out more in the conference call – details in the provided link.

Highlights:

• LPI has entered into a binding scheme implementation deed with Codelco under which Codelco will acquire 100% of the share capital of LPI by way of a scheme of arrangement.
• Under the terms of the Scheme, LPI shareholders will receive A$0.57 in cash per LPI share.
• The consideration payable under the Scheme implies a fully diluted equity value for LPI of ~A$385 million1 and represents a significant premium of:
  • 119% to the undisturbed closing share price of A$0.26 per LPI share on 26 September 2023, being the Undisturbed Date; and
  • 136% to the undisturbed 30-day VWAP of A$0.242 per LPI share up to and including the Undisturbed Date.
• The LPI Board unanimously recommends that LPI shareholders vote in favour of the Scheme, in the absence of a superior proposal (as defined in the SID) and subject to the independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of LPI shareholders.
• LPI’s major shareholder, Minera Salar Blanco SpA, intends to vote its 28.25% shareholding in LPI in favour of the Scheme, in the absence of a superior proposal and subject to the Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of LPI shareholders. All members of the LPI Board also intend to vote their LPI shares in favour of the Scheme, subject to the same qualifications.

Highlights:

• Lithium Power International Limited (ASX: LPI) has confirmed that it is engaged in discussions with Corporación Nacional del Cobre de Chile (Codelco) regarding a potential transaction. These discussions are currently ongoing.
• As of now, no agreement on terms has been reached between Lithium Power and Codelco. Codelco has been granted due diligence access and is conducting its investigations. It’s important to note that there is no certainty that these discussions will result in a finalized transaction.