Update on Sale of the Centenario Lithium Project in Argentina
As announced on 4 December 2017, the Company has entered into binding contracts with the Purchaser to dispose of 100% of the shares in Lithium Power International Holdings (Argentina) Pty Ltd ("LPIH"). LPIH is the Company's wholly-owned Australian subsidiary that holds the Company's interest in the Centenario project (the "Transaction").
The Transaction was scheduled for completion on or before 30 April 2018, however through no fault of the Company the Transaction has not yet completed. The parties have therefore agreed to extend the completion date to 14 May 2018.
The Purchaser has already advanced the Company an amount of $1 million to complete its initial payment obligations. At completion, the Purchaser will be required to pay an additional A$3M in cash to the Company. This cash price will be reduced by $250,000 in the event that a specified tenement is not transferred to the LPIH group.
In addition, the Purchaser is required to:
- pay to LPI a success fee of $375,000 on announcement of a maiden JORC resource above of at least 250,000 tonnes of lithium carbonate equivalent; and
- grant to LPI a royalty of 1.5% on gross revenues earned from Centenario for a period of 20 years commencing on the date of finalisation of a definitive feasibility study.
In the event that the Transaction does not complete by 14 May 2018, the Company will retain the $1 million already received from the Purchaser and will transfer to the Purchaser shares representing 30% of the total issued capital of LPIH.
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