(MENAFN- ABN Newswire) Sydney, Nov 17, 2017 AEST (ABN Newswire) - Lithium Power International Limited () () ("LPI" or "the Company") notes overnight Chilean media speculation and confirms that Minera Salar Blanco SA (MSB), the entity which holds the Maricunga lithium brine project and in which LPI is a 50% shareholder, has entered into discussions with major Chinese company, Fulin Group which is the head company of its wholly owned subsidiary Fulin Energy Investment Co. Ltd and Yema Auto Co. Ltd.
Fulin Group was founded in 1995 and is a large-scale enterprise group in China with modern, trans-regional and cross-sectorial business.
The draft MOU contemplates that Fulin Group and MSB will investigate co-operation between the two companies including a potential equity purchase in MSB between 20-50% and a funding agreement to provide the necessary equity and debt associated with the CAPEX for the project. For this potential investment, Fulin seeks to secure, direct project interest, offtake and agency rights.
The MOU under discussion is non-binding and any transaction between Fulin Group and MSB is subject to due diligence, agreement of the commercial terms, entry into legally binding documentation and the parties obtaining all required approvals. There is no certainty that any transaction will be entered into and LPI will update the market if and when material developments occur.
LPI's Chief Executive Officer, Martin Holland, commented:
"The Company announces our ongoing discussions, following an unsolicited approach from Fulin. This further validates the global nature and scale of the Maricunga project".
About Lithium Power International Ltd
() ()is a pure-play lithium explorer and developer, focusing on developing and fast-tracking to production the high-grade Maricunga lithium brine project in Chile.
LPI has a well known performing technical team with the experience to take the Maricunga project all the way through the development stages to production.
The regions that LPI is currently focussed on are:
1. Maricunga JV (Chile) On 13th September 2016, Lithium Power announced the creation of a new JV to develop the world-class Maricunga lithium brine deposit in northern Chile.
2. Pilbara (Western Australia) LPI has one granted exploration tenement and two pending exploration applications covering 203km2 in the Pilbara region of northern Western Australia. The largest granted exploration tenement is at Pilgangoora-Houston Creek is 2-3km west of the Pilbara Minerals (ASX:PLS) and Altura Mining (ASX:AJM) lithium deposits.
3. Greenbushes (Western Australia) LPI has two granted exploration tenements covering 400km2 in the Greenbushes area of southern Western Australia. The tenements are adjacent to the world's largest hard rock lithium mine owned & operated by Tianqi/Talison.
4. Centenario (Argentina) Through its Argentinian subsidiary, Lithium Power holds a total of 6 granted tenements in the Centenario lithium brine salar within the Salta province of the Puna Plateau. In total, the 6 granted tenements cover an area of 61.52km2. In addition, there is 1 further tenement in the grant review stage.
With the exception of the Maricunga JV, all tenements are 100% owned by LPI or LPSA (including rights to the Centenario tenement which is the subject of review by the Argentinian mining authorities).
MENAFN1611201701110000ID1096101654
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.