Lithium Power International Ltd (ASX:LPI) (OTCMKTS:LTHHF) has executed a sales agreement with Canada-based Vertex Lithium Corporation to divest its remaining 70% interest in lithium exploration properties on the Centenario Salar in Argentina.
Earlier in 2018, the company had sold a 30% interest in the Centenario properties to ASX-listed Marquee Resources Ltd (ASX:MQR).
The company will now focus on developing its flagship Maricunga Lithium Brine Project in Chile.
“Immediate value for our holding in Centenario”
Lithium Power chief executive officer Cristobal Garcia-Huidobro said: “This transaction with Vertex provides LPI with an immediate value for our holding in Centenario while retaining a very solid presence in Latin America with our flagship Maricunga lithium brine project in Chile.
“We remain committed to our strategy to be a diversified lithium explorer and developer, with projects now in Chile and Western Australia.
“They provide the considerable potential to expand the company.
“The release of value from Centenario is more effective means deploying of the company’s capital.”
Terms of the transaction
The Centenario transaction with Vertex releases the company from future annual exploration spending obligations set under Argentinean regulations.
It also removes the cost of holding the asset in a foreign jurisdiction in which the company has no plans to conduct future exploration.
The key terms of the transactions include:
- Cash payments of US$700,000, plus US$40,000 to cover the costs to execute the transaction; and
- The issue of C$250,000 worth of fully paid ordinary shares in Vertex.