Name of the Project
Maricunga lithium brine project.
Location
Northern Chile.
Project Owner/s
Lithium Power International (LPI) unveiled plans in June 2022 to consolidate ownership of the Maricunga project through a three-party all-script merger with its joint venture (JV) partners.
LPI currently holds a 51.55% interest in the Marricunga project, with JV partner MSB and Bearing Lithium Corp holding a 31.31% and 17.14% interest respectively.
MSB will contribute its 31.31% interest in Maricunga to Delaware company Salar Blanco (SBD), with LPI to issue more than 161.55-million of its own shares to acquire and merge with SBD.
In the transaction with Bearing, the merger will be completed through a Canadian plan of arrangement, with LPI to issue 0.70 of its own shares for every Bearing common share issued for a total of 76.34-milion LPI shares.
For every Bearing option and Bearing warrant exercised prior to the completion of the transaction, LPI will issue up to a maximum of 18.2-million shares, assuming all options and warrants were exercised.
The SBD transaction is subject to shareholder and regulatory approvals, while the Bearing transaction is also subject to approval from Bearing’s security holders, the Canadian courts and the completion of the SBD transaction.
Project Description
Maricunga is regarded as one of the highest-quality preproduction lithium brine development projects globally.
The updated definitive feasibility study (DFS) completed in January 2022 supports the production of 15 200 t/y of lithium carbonate for 20 years, from the lithium contained on the ‘Old Code’ mining concessions (OCC) owned by MSB.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.42-billion and an internal rate of return of 39.6, with a payback of 2 years.
Capital Expenditure
Total capital expenditure is estimated at $419-million.
Planned Start/End Date
Construction of the mine and lithium plant is expected to begin in 2020, with first production of lithium expected in 2023.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
WorleyParson (updated DFS) GEAMesso (production process design and future supply contract for the equipment and production plant).
Contact Details for Project Information
Lithium Power International, tel +61 2 9276 1245 or email info@lithiumpowerinternational.com.