Lithium Power International Ltd Stock Market Press Releases and Company Profile
Interim Report
Interim Report

Sydney, Mar 14, 2018 AEST (ABN Newswire) - The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Lithium Power International Limited (googlechartASX:LPI) (googlechartLTHHF:OTCMKTS) (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the period ended 31 December 2017.

MARICUNGA - CHILE JOINT VENTURE

During the half-year ended 31 December 2017, the consolidated entity, through the Maricunga joint venture ('JV') company, Minera Salar Blanca ('MSB') continued to develop its flagship Maricunga lithium brine project (the 'Maricunga').

Significant milestones during the half year included:

- The release of the maiden JORC code (2012) compliant resource estimate. This was a 3.7-fold increase on previous resource estimates with high grade Measured, Indicated and Inferred resource to 2.15 million tonnes (Mt) of lithium carbonate equivalent ('LCE') and 5.7 Mt potassium chloride (KCI) to a depth of 200m.

- The release of an updated NI43-101 report in relation to the increase in the Maricunga resource update.

- Advanced production testing of the lithium and potash extraction processes for Maricunga continues, with final results of the first LCE production released. Using expert equipment suppliers Veolia and GEA to optimise the lithium extraction process, 5% lithium concentration was successfully achieved in stage 1 process test work. Stage 2 test work continues with the first production of Li2CO3 and KCL (test samples) were released in February 2018.

- The production process utilizes conventional brine processing technology, consisting of evaporation ponds for brine concentration and proven processes on the concentrated brine, in order to minimise uncertainty over future operations. The process will produce lithium carbonate with potash (KCl) as an additional product once the lithium operation is established.

- Outstanding economic outcomes announced from the Preliminary Economic Assessment (PEA) for the Maricunga, including an ungeared IRR of 23.4% and a project NPV of US$1.05 billion before tax, using an 8% discount rate and based on a project life of 20 years.

- Forecast project operating costs place the Maricunga among the most efficient global lithium producers, with lithium carbonate production costs of US$2,938 per tonne FOB. This reduces to US$2,635/t with credits from a potassium chloride fertiliser (KCl) by-product.

- Geotechnical site investigation testing has been completed on the plant and pond sites to provide information for construction engineering design. The layout design of the ponds for brine evaporation is also nearing completion.

- LPI's and MSB's boards have approved advancing the project to a Definitive Feasibility Study.

- Site visits to Maricunga were conducted with several groups of investment analysts, including Canaccord and Sprott Asset Management.

- A non-binding MOU with Chinese motor vehicle manufacturer Sichuan Fulin Industrial Group Co Ltd ('Fulin') has been executed for potential project equity participation as well as off-take agreements. A technical and legal due diligence process has been conducted by Fulin, which was completed in January 2018. Further discussions are expected to continue.

- External geo-political events that have occurred in this period of interest to the Company were:

o The election of a new government and the election of Mr Sebastián Piñera as President. It is widely considered that the new government will be pro-mining and pro-foreign investment; and

o Recent media reports from Chile with both the Codeclo tender process and the SQM & Albemarle royalty payments do not relate or impact on the Company's Maricunga joint venture.

CENTENARIO - ARGENTINA

A contract has been executed with Centenario Lithium Limited to buy the Centenario lithium brine project in Argentina for A$4 million plus a 1.5% gross royalty on future production to LPI. The transaction is for the sale of the shares in the wholly owned subsidiary Lithium Power International Holding (Argentina) Pty Ltd which owns 100% of the shares in the Company's Argentine subsidiary company.

An initial A$1 million has been received, with the balance to be paid at completion of the transaction on or before 30 April 2018. The purchaser may elect to pay the balance in a combination of cash and shares, which will attract a A$250,000 premium on the total purchase price to total A$4.25 million.

PILGANGOORA - WESTERN AUSTRALIA

Initial desk top and surface sampling with the Company's three Pilgangoora tenements continue in Western Australia. Two unsolicited approaches have been received by third parties to acquire and/or joint venture in the Tabba Tabba and Houston Creak projects.

GREENBUSHES - WESTERN AUSTRALIA

Initial desk top and surface sampling continue in the Greenbushes region with the view of identification of specific targets to commence a drilling program in the first half of 2018.

CAPITAL RAISING

The Company successfully raised A$35.6 million. This comprised a heavily over-subscribed A$15M offering, at a price of $0.55 per share, to new institutional, existing and sophisticated investors fully underwritten by Canaccord Genuity (Australia) Limited, in conjunction with a fully underwritten placement of approximately A$20.6M via the exercise and underwriting of the listed LPIO options which had an exercise price of A$0.55 each.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the consolidated entity during the financial period.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL PERIOD

On 20 February 2018 the Company decided to bring forward the final payments for the unpaid interest in the Maricunga joint venture. The outstanding amount, US$7.53m, was paid on 28 February 2018, resulting in the Company owning a fully paid 50% interest in the Maricunga joint venture.

No other matter or circumstance has arisen since 31 December 2017 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

To view the full report, please visit:
http://abnnewswire.net/lnk/B076253Z


About Lithium Power International Ltd

Lithium Power InternationalLithium Power International Limited (ASX:LPI) is a pure play lithium company with three distinct project regions to provide diversification. One is located in South America's brine region and three are in Australia's spodumene hard rock areas of Western Australia.

The primary focus is to develop of Chile's next high-grade lithium mine on the Maricunga Salar in an area known as the Lithium Triangle. The Company has also expanded its tenement holdings of lithium exploration prospects in Western Australia.

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Contact

Lithium Power International Ltd
Telephone: +61-2-9276-1245
Facsimile: +61-2-9276-1284
WWW: www.lithiumpowerinternational.com



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