Lithium Power International Ltd
Lithium Power International Ltd
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Developer Lithium Power International says a three-way agreed deal to simplify ownership of the Maricunga brine project in Chile will enhance its ability to source capital for the $US626M development of a 20-year, 15,200tpa operation.
LPI, which currently owns 51.55% of the Atacama region project, will acquire the interests of JV partners MSB Spa (31.31%) and Bearing Lithium (17.14%) through a share-swap deal equivalent to about 17% below its see-through market value.
The wait has been worth it for Australian-based Lithium Power International. The deferred release of the updated DFS for stage 1 of its 51.6%-owned Maricunga lithium brine project in Chile has positioned it as one of the world’s lowest-cost producers of lithium carbonate.
The study by engineering consultancy Worley outlines $US626M capex development to produce 15,200tpa LCE for 20 years at operating costs of $3,718/t, excluding credit from potassium chloride by-product.
The need to update market assumptions to catch up with lithium’s improving performance during the last 12 months and the changing demand/supply balance has delayed the completion of Australian-based developer Lithium Power International’s updated DFS for its 51.6%-owned Maricunga lithium brine project in the Atacama region, Chile.
Australian-based LPI has posted a 90% increase in resources as it nears completion of an updated definitive feasibility study for its Maricunga Stage 1 lithium brine project in Chile’s Atacama region.
CEO Cristobal Garcia-Huidobro says the measured and indicated resource of 1.91Mt lithium carbonate equivalent confirms Maricunga as one of the world’s richest lithium brine deposits. The Stage 1 project also holds 4.95Mt potassium chloride.
The Maricunga resource remains open at depth.
LPI says it is fully funded through to the final investment decision on its 51.6%-owned Maricunga lithium brine project in Chile’s Atacama region after raising $A12.4M from sophisticated and institutional investors in a placement at 26cps that was well-supported by new and existing, domestic and offshore shareholders.
Japanese conglomerate Mitsui has joined Lithium Power International in a planned strategic alliance covering development, funding and production offtake at LPI’s 51%-owned high-quality Maricunga lithium brine project in the Altiplano of the Chilean Atacama region.
The MoU between the two companies includes first stage direct funding and offtake rights for Mitsui over 15,000tpa of battery-grade production for 10 years and extendable for a further 10 years.
Pure-play lithium company LPI has passed the final milestone in advancing its $US563M Maricunga development in the Atacama region in N Chile towards a construction start in the Sept 2020 qtr with Central Environmental Committee approval of its EIA.
CEO Cristobal Garcia-Huidobro says the approval reinforces the company’s strong relationship with the Chilean government.
The Maricunga lithium brine project in N Chile shapes as a highly efficient operation, with 50% owner LPI predicting production of 20,000tpa lithium carbonate equivalent over 20 years at operating expenditure of $US3,722/t.
The project DFS estimates direct development cost at $US456M.
LPI expects to finalise discussions on project finance with major Chilean and international institutions.
LPI has exceeded the requirements of a 20-year mine life with the declaration of a maiden reserve of 742,000t lithium carbonate equivalent for its 50%-owned Maricunga project in N Chile. The reserve is compliant with JORC and NI 43-101 standards.
The reserves figure, and an updated resources estimate of 2.07Mt LCE in measured and indicated classifications, come days ahead of the expected release of a DFS on the lithium brine project.
The settlement of a stand-off with the Chilean govt has opened the way for final approvals of LPI's 50%-owned Maricunga lithium project.
LPI says JV company Minera Salar Blanco agreed to drop legal proceedings against the govt after receiving a positive response to its concerns about the project licensing process.
Its application for a special lithium operation contract, to be lodged next month, will be the final approval required under current legislation.