Chile's Codelco reaches deal to buy Lithium Power for $244 mln (updated)

Lithium Power International

18/10/2023 24:16

(Adds details from press release and context)
       SANTIAGO, Oct 17 (Reuters) - Chile state miner Codelco
 COBRE.UL , the world's largest copper producer, has reached a
deal to buy Lithium Power International  LPI.AX  for A$385
million ($245 million), the companies said on Tuesday.
    The deal comprises a cash offer of 0.57 Australian dollars
per share for the Australian firm, which owns the Blanco project
in the Maricunga salt flat, near Codelco's own properties.
    "The acquisition of LPI will make the Blanco Project viable
through synergies with Codelco's assets and permits in the
Maricunga (salt flat)," Maximo Pacheco, Codelco's chairman, said
in a press release.
    He added that the acquisition positions Codelco to strongly
"execute our strategy of becoming a globally relevant supplier
of critical metals to enable the energy transition."
    The statement noted an LPI shareholder approval is needed
for the deal to proceed and a vote is expected in January 2024.
    In Late September, Codelco said it would undertake due
diligence on Australia's Lithium Power International but there
was no certainty of a definitive deal. 
    In April, Chile announced a plan to take state control over
the country's vast lithium industry and tasked Codelco with
leading the charge.
    This comes at a time when Codelco has been facing
deteriorating financials and its lowest production in nearly a
quarter century. 
    
    
($1 = 1.5711 Australian dollars)

 (Reporting by Natalia Ramos; Editing by Valentine Hilaire and
Stephen Coates)
 ((sarah.morland@thomsonreuters.com;))