PERTH (miningweekly.com) – ASX-listed Lithium Power International will raise A$25-million in a share placement to progress the development of its Maricunga brine project, in Chile.
The company has received firm commitments from institutional, sophisticated and professional investors for the placement of more than 41.66-million shares, at a price of 60c each.
The placement will be undertaken in a single tranche under Lithium Power’s existing placement capacity, with the offer price representing a 13.7% discount to the company’s last closing price, and a 5% discount to its five-day volume weighted average share price.
“The result of the capital raise is an outstanding endorsement of Lithium Power’s ambition to rapidly advance the significant Maricunga lithium asset and capitalise on the rapid global shift towards the electrification of transport and infrastructure. Investing in green technologies is essential to ensuring the battery revolution and the delivery of clean, green energy that the world is eagerly awaiting,” said MD and CEO Cristobal Garcia-Huidobro.
“The funds raised will allow Lithium Power to progress the development and accelerate the expansion of the Maricunga project, as well as general working capital purposes.”
The January definitive feasibility study estimated that the project would require an initial $419-million capital investment into the Stage 1 project, which would support the production of 15 200 t/y of lithium carbonates over a mine life of 20 years.
The study estimated that the project would have a net present value of $1.42-billion and an internal rate of return of 39.6%, with a two-year payback period. Project operating cost places Maricunga among the most efficient producers with an operating expenditure of $3 718/t, not including credit from potassium chloride (KCl) by-product.
Meanwhile, Lithium Power said on Friday that good progress was being made on the process for approval of the consolidation of the ownership of the Maricunga project.
The company in June unveiled plans to consolidate the ownership of the asset by way of a three-party all-scrip merger with its joint venture (JV) partners.
The company expects that notices of meeting will be despatched within the next month to shareholders of Lithium Power and JV partner Bearing Lithium Corp for approval of the transaction by their respective shareholders.
In the transaction with Bearing, the merger would be completed by way of a Canadian plan of arrangement, with Lithium Power to issue 0.70 of its own shares for every Bearing common share issued, for a total of 76.34-milion Lithium Power shares. For every Bearing option and Bearing warrant exercised prior to the completion of the transaction, Lithium Power would issue up to a maximum of 18.2-million shares, assuming all options and warrants were exercised.
The company told shareholders that the delay to the original timetable has largely been caused by the time taken to obtain an independent expert's report for shareholders and the need to first finalise the audit of the company's 2022 financial statements, which need to be provided to Bearing shareholders.