Lithium Power International Ltd (ASX:LPI) has brought its stake in the flagship Maricunga Lithium Brine Project in Chile to 82.86% after taking the first steps to consolidate a 100% interest in the tenure.
This follows a scheme meeting and second court hearing for a transaction with Minera Salar Blanco SpA (MSB) for its 31.31% interest.
MSB contributed its interest in Maricunga to the company Salar Blanco LLC, which LPI has completed a merger with to consolidate its interest to 82.86%.
This transaction was the final condition to a second agreement with Bearing Lithium Corp (TSX-V:BRZ), which holds the final 17.14% interest in Maricunga.
Lithium Power expects to complete this final transaction by Thursday, December 22, which will secure 100% ownership in Maricunga for LPI.
About Maricunga Project
Maricunga sits 170 kilometres northeast of Copiapó in Salar de Maricunga in the Atacama Region of northern Chile.
In January this year, LPI released the results of an updated definitive feasibility study (DFS) for stage one development at the project.
The DFS supports production of 15,200 tonnes per annum of battery-grade lithium carbonate for a project life of 20 years.
Project net present value (NPV) was calculated at US$1.3 billion after tax (8% discount rate), with an internal rate of return (IRR) of 39.6%, a two-year payback period, and annual earnings before interest, tax, depreciation or amortisation (EBITDA) of US$324 million.
LPI says the project will have an exceptional ESG profile, with an aim to achieve carbon neutrality once the project is fully operational.