LPI Consolidates 100% of the Maricunga Project
02 November 2022 - 3:34AM
Lithium Power International Limited (
ASX: LPI)
(“
LPI” or the “
Company”) is
pleased to provide an update on the progress of the consolidation
of LPI's flagship Maricunga lithium brine project
("
Maricunga" or "
Project").
As announced on 22 June 2022, the Company
currently holds a 51.55% interest in the Project. The Company
entered into definitive binding agreements with its joint venture
partners to acquire their interests and consolidate 100% ownership
of the Project via two separate all-scrip merger transactions,
(together the "Consolidation Transaction")
with:
- a Delaware (USA) based merger with
Salar Blanco, LLC (“SBD”) and a concurrent
Australian scheme of arrangement ("Australian
Scheme") pursuant to which LPI will merge with SBD and
consequently acquire its 31.31% interest in the Maricunga; and
- a Canadian based plan of
arrangement ("Arrangement") with Bearing Lithium
Corp. (BRZ:TSXV) (“Bearing”) to
acquire its 17.14% interest in the Maricunga (“Bearing
Transaction”).
Salar Blanco LLC (“SBD”)
Transaction
This transaction has progressed significantly in
recent weeks, with LPI shareholders approving the issue of
consideration shares to SBD's parent company under the SBD
Transaction. The Company's extraordinary general meeting, held on
28 October 2022, resulted in a significant majority of shareholders
voting in favour of that resolution.
The remaining material conditions to complete
the transaction include completion of the Australian Scheme. The
Company is notifying shareholders that a second court hearing in
relation to the Australian Scheme is currently scheduled for 17
November 2022, following which and subject to approval by the
Australian Court of the Australian Scheme, the SBD transaction will
become unconditional.
The Company anticipates that completion of the
SBD transaction and the consolidation transaction as a whole will
occur on or around 21 November 2022.
Bearing Lithium Corp. (“Bearing”)
Transaction
A meeting of Bearing shareholders was held on
Friday, 28 October 2022 at which it was resolved by an overwhelming
majority to approve the arrangement and the Bearing transaction.
Details relating to the results of that meeting are available on
Bearing's profile at www.sedar.com.
The remaining conditions to completion of the
transaction are for the Canadian Court to approve the arrangement
at a final court hearing and for the completion of the SBD
transaction ("SBD Condition").
Bearing and LPI are in discussions which may
result in Bearing waiving the SBD Condition as a closing condition
to the Bearing Transaction. If waived, and following approval by
the Canadian Court, the transaction will become unconditional and
will proceed to completion regardless of the outcome of the SBD
Transaction.
Once the Bearing Transaction becomes
unconditional, it will be a matter of days for the administrative
and logistical processes relating to the transfer of Bearing shares
to LPI and the issue of LPI shares to Bearing shareholders to be
completed. The Company anticipates that, if the SBD Condition is
not waived by Bearing, final close of the Bearing Transaction will
occur on or around 21 November as per the above timetable for the
SBD Transaction. If the SBD Condition is waived, the company
anticipates closing the Bearing Transaction on or around 7 November
2022 (in Canada).
These timeframes are indicative only and may be
subject to change.
The Chairman of LPI, Mr. David Hannon,
said:
"It is pleasing to see that the shareholders of
both LPI and Bearing wholeheartedly support the Consolidation
Transaction as is evidenced by the strong shareholder turnout and
the overwhelming number of votes in favour of the respective
aspects of the Consolidation Transaction. The consolidation of the
project is a crucial milestone for LPI and its shareholders. The
LPI board is excited to lead the Company towards becoming a major
global player. It will be a significant producer of high-grade
lithium carbonate and deliver long-term value and sustainable
growth for LPI’s shareholders."
Transaction Advisors
Treadstone Resource Partners acted as a
strategic and financial advisor to LPI in relation to the
Consolidation Transaction. Ashurst acted as Australian legal
advisor, Stikeman Elliott LLP acted as Canadian legal advisor, and
Pillsbury Winthrop Shaw Pittman acted as US legal advisor to LPI in
relation to the Consolidation Transaction.
Authorised for release by the Board of Directors
of Lithium Power International Limited.
For further information, please
contact:
Cristobal Garcia-Huidobro – CEO; or
Andrew Phillips – CFO Lithium Power International E:
info@lithiumpowerinternational.comPh: +612 9276 1245
www.lithiumpowerinternational.com@LithiumPowerLPI
Jane Morgan – Investor and Media
Relations + 61 (0) 405 555 618
jm@janemorganmanagement.com.au
For U.S. and other international investor
relations enquiries:
Arrowhead Business and Investment
Decisions, LLC Thomas Renaud | Managing Director42
Broadway, 17th Floor New York, NY 10004Office: +1 212
619-6889enquire@arrowheadbid.com
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