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Lithium Power International to consolidate wholly ownership of Marikunga Lithium Brine project

Lithium Power International to consolidate wholly ownership of Marikunga Lithium Brine project

tech innovation 2022

Lithium Power International is set to consolidate 100% ownership of the Marikunga Lithium Brine project in Chile through a three-party all-scrip merger with Minera Salar Blanco S.p.A. and Bering Lithium Corp.

Lithium Power International (LPI) has revealed that it is looking to consolidate wholly ownership of the Maricunga Lithium Brine Project (Maricunga) in Chile through two scrip mergers with its joint venture (JV) partners Minera Salar Blanco SpA (MSB SpA). entering into definite binding agreements for and Bearing Lithium Corp. (Bearing).

Strengthening 100% Ownership

Currently, LPI holds 51.55% in Marikunga, while MSB SpA holds 31.31% and Bearing 17.14%. Consolidation of ownership will be done through two separate transactions. MSB SpA will contribute its 31.31% interest in Marikunga, a Delaware company, to Salar Blanco, LLC (SBD), a wholly owned subsidiary of MSB SpA. LPI will consolidate ownership of SBD’s interest in Marikunga through a Delaware merger with SBD. Meanwhile, the transaction with Bearing for 17.14% interest will be finalized through the Canada Arrangement Plan.

LPI President David Hannon explained: “We are extremely pleased to have reached an agreement with both MSB SPA and ASER to consolidate 100% ownership of Marikunga. The updated DFS released on 20 January 2022 shows Marikunga Lithium Carbonate in the world. Can be one of the lowest cost producers of the project, has a highly attractive asset base with strong economics of the project.

“This transaction is a highly logical step for LPI. After assuming full control of the project, LPI will create a robust platform from which Marikunga can be developed and funded. We are proud of all LPI shareholders including MSB SPA and new bearing shareholders. We look forward to continuing to provide long-term value to you.”

Martin Borda, Director of Lithium Power, said: “I am excited to consolidate ownership of Marikunga in a logical transaction that ideally positions the company to pursue project development and deliver the full value of the Marikunga project.” significantly enhances the LPI’s potential for the LPI’s shareholders.”

Gil Playford, Bearing’s Chairman and CEO, said: “Bearing’s Board of Directors has unanimously agreed with our MSB Joint Venture Partners, LPI, and Mr. Martin Borda, owner of MSB SPA, to consolidate our ownership in MSB to an equity interest. ASX listed LPI, which will be 100% part of the project.

“The officers and directors have agreed to vote in favor of their stock and recommend the effective shareholders to vote in favor of the transaction at the annual and special shareholders’ meeting to be held in early September. The Board’s conviction It is hoped that the Influential Shareholders will benefit from the many benefits of better liquidity of LPI along with consolidation of 100% of the project into LPI.

Marikunga Lithium Brine Project

Maricunga is located 170 km northeast of Copiapó in the Salar de Maricunga in the Atacama region of northern Chile. In January 2022, the company disclosed the results of its updated Definitive Feasibility Study (DFS) for the Stage One Marikunga Lithium Brine Project, which supports 15,200 tonnes/production of battery-grade lithium carbonate for 20 years. DFS offers a project NPV of $1.4bn (after tax) at a discount rate of 8%, providing an IRR of 39.6%, two-year payouts and an estimated steady-state annual EBITDA of $324m.

Simultaneously, the study validated Marikunga’s potential as one of the world’s lowest-cost lithium carbonate producers, with an OPEX of $3,718 per tonne, excluding credits from potassium chloride by-products. The project will have an outstanding ESG profile, intending to achieve carbon neutrality once the operation is settled, setting new standards for social interactions.

For more information about LPI’s consolidation of the Marikunga Lithium Brine project, please visit Announcements on its website.


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Lithium Power International to consolidate wholly ownership of Marikunga Lithium Brine project

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