Lithium Power International Ltd (ASX:LPI) has confirmed that the standing of its concessions and permitting at the flagship 100%-owned Maricunga Lithium Brine Project in Chile is solid according to the laws of the country.
In response to news in Chilean press regarding the exploitation of lithium in the Salar de Maricunga, the company said the project’s development has been reinforced by multiple legal positions in the last three years by large and specialist law firms in Chile.
“LPI has absolute confidence in the Chilean legal system and in its strict compliance by its authorities, including ministers, where only the courts have the jurisdiction to interpret laws,” the company said.
“These authorities have approved and supported LPI in the development of the project from its inception, always ensuring equal treatment and protection for foreign investors in Chile,” it added.
Solid feasibility study
Maricunga’s feasibility study for Stage One of the project has been developed in a very detailed manner to a “shovel-ready stage” covering permitting, exploration work, environmental approvals and export permitting.
There has also been significant public support from regional authorities and local indigenous communities as well.
Globally significant project
LPI's expansion over the rest of its Stage Two reserves will be supported by the projected strong global demand for lithium.
The company believes it could advance a joint development with CODELCO, Chile’s state-owned copper mining company and the world's largest copper producer, at a later time.
Project financing
Several expressions of interest in relation to debt and equity funding have been received, and are being reviewed by LPI’s management and its advisors.
The process will progress during the upcoming months, with updates provided to shareholders in due course.
LPI announced last week that its shareholders had approved the consolidation of the Maricunga JV, which is expected to be completed by the end of this month.
Deeply heartened
LPI said it has been greatly encouraged by Chilean Mining Minister Marcela Hernando’s statement in London last week saying, “I would like to make it clear as a nation we are very respectful of our treaties and agreements. In Chile, there is legal certainty. Therefore, companies and investors can rely on the stability of the institutions and although we are in a process of constitutional change, there are international rules that are superior to some constitutional norms.”
Hernando added: “The new Constitution has been a process, in which I would like to highlight respect for institutionally. The Chilean people went through a moment of crisis that left no one indifferent, and that is mainly motivated by great inequality.”
LPI said it remains fully committed and will continue to work hard to realise the significant value inherent to the Maricunga project.