Lithium Power International (LPI) has provided an update on recent Chilean media reports regarding the company’s flagship Maricunga lithium brine project.
Some reports have questioned the planned development of LPI’s globally significant lithium brine project on the Salar de Maricunga, which is now wholly-owned. In response to news that appeared in the Chilean press regarding the exploitation of Lithium in the Salar de Maricunga, LPI confirms that the standing of its concessions and permitting according to Chilean law is solid. This has been reinforced by multiple legal positions during the last three years from the 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. 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.
The feasibility study of the Maricunga Stage One 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.
Strong global demand for lithium supports LPI’s expansion over the rest of its Stage Two reserves, where a joint development with CODELCO could advance at a later time. LPI is continuing with its project financing process, which is being assisted by Canaccord and Treadstone. Several expressions of interest in relation to debt and equity funding have been received, which are being reviewed by LPI management and its advisors.
The process will progress as expected during the upcoming months, with updates provided to shareholders in due course. LPI announced on 28 October 2022 that its shareholders had approved the consolidation of the Maricunga JV (MSB). Completion of the process is expected by the end of November when MSB will be fully owned by LPI.
Speaking in London last week, Chile’s Mining Minister, Marcela Hernando, commented: “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 the process of constitutional change, there are international rules that are superior to some constitutional norms.
“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.”
The Company and its Board remain fully committed and will continue working hard to realise the significant value inherent to the Maricunga lithium brine project.
