Ashurst advises Lithium Power International on its ~A$385 million acquisition by Codelco

    Global law firm Ashurst has advised Lithium Power International Limited (LPI) on the proposed acquisition of LPI by Corporación Nacional del Cobre de Chile (Codelco) by way of a scheme of arrangement. Under the scheme, Codelco will acquire 100% of the issued share capital of LPI for A$0.57 in cash per share, valuing LPI at ~A$385 million.

    LPI and Codelco have entered into a binding scheme implementation deed. Subject to the satisfaction of the scheme's conditions, it is proposed that the scheme be implemented in the first quarter of 2024.

    LPI is a pure-play lithium company, with its principal project being the Maricunga Lithium Project in Chile. The Maricunga Lithium Project is South America's highest-quality pre-production lithium brine project and has one of the world's highest-grade lithium resources. Codelco is a Chilean state-owned company and the world's largest copper producer. Codelco is looking to acquire LPI to consolidate its position in the Maricunga Salt Flats in Chile as part of Chile's National Lithium Strategy.

    The arrangements for LPI's acquisition by Codelco follow the ownership consolidation of LPI's Maricunga Lithium Project in 2022. Ashurst had advised LPI on the ownership consolidation of the project between the three original joint venture parties and the sale of its Western Australian exploration projects to Albemarle in 2023.

    The Ashurst team was led by partners Murray Wheater and Ben Stewart, who were assisted by: senior associate Josh Walsh, associates Daniel Lucanus and Benjamin Paganin and graduates Reuben Edlin and Bronte Campion (Corporate transactions).