Sorry people but will post late weekend to provide some perspective on matters which are not being considered with much thought. I cannot bite my tongue.
Stage 1 is evaporation ponds - approved under the Maricunga project EIA. NOT DLE. I think this NZer is the person who lambasted LPI for not building a solar farm when they will be executing a renewable-sourced power purchase agreement by accessing the transmission line adjacent to LPI's development area.
Some possible finance options available to LPI are:
100% full debt financing linked to a specified offtake formula which I know the LPI stage 1 project configuration would easily cover.
Equity and debt with the debt component secured against a long-term offtake arrangement. The most important issue for some investors will be securing the full production offtake under a long-term arrangement. That is the holy grail for some. And they would be willing to pay for such an arrangement. Equity to be priced as a percentage of project NPV.
Private equity - private equity would be sniffing around.
Full LPI takeover - LPI's strategic position at Maricunga places it in a very enviable commercial position. I will elaborate more on Sunday.
No doubt many more finance options with different combinations and structures will be considered by the LPI Board.
And the investors / financiers/ suitors are NOT starting now. This process started with Mitsui in 2H 2021, with other parties invited to the data room in October 2022. Numbers have been crunched and bids will be pending.
Maricunga is one of the world's premier lithium brine deposits. For example the SC6 drill hole in our Litio concessions recorded an average grade of 1650mg/l Li. Our Litio concessions are higher grade than the old code tenements and we have only drilled 50% of our total resource at Maricunga. If would be safe to say the entire Maricunga salar has a 15-20 million tonne resource with a grade well over 1,000mg/l Li. Investors are not going to run from that.
And regarding the WA drilling, the main exploration targets will be drilled later. Drilling completed recently was reconnaissance activity.
Good times ahead.
Hey Seroz, chin up mate, not long to go.
Cheers all.
Not financial advice, just my considered opinion.
LPI Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
