Lithium Power International Ltd (ASX:LPI) has made significant progress on the planned consolidation of its flagship Maricunga Lithium Brine Project in Chile.
The company announced in June that it had agreed to acquire the stakes held by joint venture partners, Salar Blanco, LLC and Bearing Lithium Corp (TSX-V:BRZ), to consolidate 100% ownership of the project via two separate all-scrip merger transactions.
It currently holds a 51.55% interest in Maricunga.
Salar Blanco transaction
LPI shareholders approved the issue of consideration shares to the Salar Blanco (SBD) parent company during an extraordinary general meeting held on October 28, 2022.
A second court hearing in relation to the Australian scheme of arrangement to merge LPI with SBD and consequently acquire SBD's 31.31% interest in Maricunga, is scheduled for November 17, 2022.
Following this and subject to approval by the Australian court, the transaction will become unconditional.
LPI expects this entire transaction to be completed on or around November 21, 2022.
Bearing Lithium transaction
Bearing Lithium shareholders approved the plan for LPI to acquire its 17.14% interest in Maricunga during a meeting on October 28, 2022.
Bearing and LPI are in discussions which may result in Bearing waiving the SBD condition as a closing condition to the Bearing transaction.
If waived, and following approval by the Canadian court, the transaction will become unconditional and be completed on or around November 7, 2022, regardless of the outcome of the SBD transaction.
However, if the SBD condition is not waived, the Bearing transaction is expected to close on or around November 21, 2022.
Strong shareholder turnout
LPI chairman David Hannon said: "It is pleasing to see that the shareholders of both LPI and Bearing wholeheartedly support the consolidation transaction as is evidenced by the strong shareholder turnout and the overwhelming number of votes in favour of the respective aspects of the consolidation transaction.
“The consolidation of the project is a crucial milestone for LPI and its shareholders. The LPI board is excited to lead the company towards becoming a major global player. It will be a significant producer of high-grade lithium carbonate and deliver long-term value and sustainable growth for LPI’s shareholders."