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A$30 MILLION CASH SALE AGREED FOR WESTERN LITHIUM LTD
ASX RELEASELPI: ASX - 19 June 2023A$30 MILLION CASH SALE AGREED FOR WESTERN LITHIUM LTDLithium Power International Limited (ASX: LPI) (LPI or the Company) is pleased to announce that it hasentered into a binding agreement to sell its wholly-owned Australian subsidiary, Western Lithium Ltd(WLI) (100% owner of a number of tenements, including through its subsidiary, CMC Lithium Pty Ltd,in Western Australia) to Albemarle Lithium Pty Ltd (an Australian subsidiary of AlbemarleCorporation).The transaction involves Albemarle Lithium Pty Ltd acquiring 100% of WLI’s shares (which had beenin the process of being spun-off by LPI into a separate company with the intention of listing that vehicleon the ASX).The sale agreement is an all cash-for-shares transaction amounting to AUD$30,000,000 (thirty millionAustralian dollars),subject to a customary price adjustment to reflect WLI'sliabilities as at completion.Out of the total consideration AUD$29,000,000 will be received at completion while the balance ofAUD$1,000,000 will only be received if certain tenement applications are granted within 18 monthsof completion. The transaction is not subject to any conditions precedent.As previously announced, the intended demerger of WLI from LPI and subsequent new listing of WLIon ASX was well advanced. However due to subdued capital market conditions and an attractive cashoffer received from Albemarle, the Board of LPI decided that this transaction would provide bettervalue and less risk to LPI’s shareholders than continuing with the WLI listing.Subject to completion, the transaction provides LPI with an immediate realisation of value for WLI andwill result in a healthy cash balance as the Company progresses to finance and construct its flagshipMaricunga lithium brine project in Chile. This transaction provides significant non-dilutive balancesheet strength to support financing and offtake negotiations with international financing institutions.Completion is expected to occur effective on or around 3 July 2023.
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