Lithium Power International's Maricunga Lithium Project Remains on Track Despite Chile's New National Lithium Policy

About Lithium Power

Lithium Power International (ASX: LPI) is a lithium exploration and development company focused on developing its 100% owned Maricunga lithium brine project in Chile. Maricunga is regarded as one of the best undeveloped lithium brine projects in the world due to its high quality resource, clear path to production, and strong ESG credentials.

LPI is led by a highly experienced team with extensive expertise in lithium, mining project development and finance. The company is listed on the Australian Securities Exchange (ASX). LPI’s vision is to develop Maricunga into a world-class lithium operation that sets the standard for environmental, social and governance practices in the industry.

Reaffirming Project Status and Rights in Light of Chile's National Lithium PolicyIn a recent press release, Lithium Power International responded to media speculation about the status of its Maricunga project following the announcement of Chile's new National Lithium Policy (NLP) in April 2023.

The company refuted misinformation circulating in news articles and unambiguously reaffirmed the standing of its concessions, rights and permitting under Chilean law. LPI also highlighted key protections under international trade agreements between Australia and Chile.

Importantly, LPI confirmed there are no current legal processes challenging its rights to Maricunga, which remains fully permitted and shovel-ready pending financing. The company embraces the NLP's focus on greater national participation in lithium projects moving forward.

Stage One Fully Permitted and "Shovel Ready" Under Pre-1979 Mining CodeLPI emphasized that its wholly owned subsidiary, Minera Salar Blanco, is the sole owner of all Maricunga concessions. The Stage One concessions were granted before 1979, when lithium was not yet considered a strategic resource.

Therefore, Stage One does not require a CEOL (Special Lithium Operation Contract) and has already obtained its environmental permit from Chile's SEA agency in 2020 along with other necessary permits.

The project is now fully permitted and ready for construction once financing is secured. LPI stated there are no legal challenges to its rights over Stage One.

Unique Social and Environmental Credentials

LPI noted Maricunga's world-leading social and environmental practices, which were incorporated into its approved environmental impact assessment (EIA). This includes comprehensive agreements with local communities and indigenous groups that set a new standard for social engagement.

The company aims to make Maricunga one of the first lithium projects globally to achieve carbon neutrality, in line with its strong ESG focus.

Protections Under International LawLPI pointed out that Chile's new policy does not constitute a nationalization of its lithium industry. The company believes its rights remain solid under Chilean law. Additionally, international agreements provide protections for foreign investors in Chile.

This includes the Australia-Chile Free Trade Agreement enacted in 2009 and the Trans-Pacific Partnership which both Chile and Australia have ratified. LPI can leverage these pacts as a foreign investor if any disputes arise.

Strategic Partnerships Remain Possible Under NLPFor the project's Stage Two expansion using its post-1979 concessions, LPI embraces the NLP's call for increased public-private partnerships. The company sees an opportunity to make Maricunga Stage Two the first such alliance under the policy.

LPI stated it will collaborate closely with Chilean authorities to develop Stage Two under the NLP's framework when the time comes.

Financing Discussions Ongoing

LPI noted it continues to evaluate multiple financing options for Stage One, from potential offtake agreements with strategic investors to debt and equity alternatives. The policy gives helpful clarity around Maricunga's development for financiers and investors.

Conclusion

Lithium Power International has firmly rebutted misinformation and unambiguously reaffirmed the solid legal standing of its Maricunga lithium project. Maricunga remains a premium lithium asset, with Stage One fully permitted and ready for swift development once financing is completed. LPI continues to progress financing discussions.

The company believes its rights remain intact under Chilean law, with no legal threats to the project. As a shovel-ready project with strong ESG credentials, Maricunga is well-positioned to help supply surging lithium demand in the years ahead. Investors can remain confident in LPI and the status of its flagship project in Chile.

‍