Ashurst advises LPI on acquisition by Codelco

Global law firm Ashurst has advised Lithium Power International Limited (LPI) on the acquisition of LPI by a wholly-owned subsidiary of Corporación Nacional del Cobre de Chile (Codelco), Salar de Maricunga SpA. Under the scheme of arrangement, which was implemented on 14 March 2024 following approval of the transaction by LPI's shareholders, the Federal Court of Australia and the Foreign Investment Review Board, Codelco has now acquired 100% of the issued share capital of LPI for A$0.57 in cash per share, valuing LPI at ~A$385 million.

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 copper company. Codelco acquired LPI to consolidate its position in the Maricunga salt flats in Chile as part of Chile's National Lithium Strategy.

Partner Murray Wheater said:

"It has been a pleasure supporting LPI on this important transaction through to implementation, which follows on from the consolidation of LPI's Maricunga Lithium Project in 2022 (via an innovative structure of inter-conditional schemes of arrangement in Australia and Canada) and the sale of LPI's WA exploration projects to Albermarle in 2023." 

Partner Ben Stewart added:

"We are delighted to have worked closely once again with LPI to deliver an excellent outcome through the implementation of this transaction with Codelco. We congratulate LPI and Codelco on a successful transaction and look forward to seeing Codelco develop the significant Maricunga Lithium Project over the coming years."

The Ashurst team was led by partners Murray Wheater and Ben Stewart, who were assisted by: senior associate Josh Walsh and associates Daniel Lucanus, Benjamin Paganin, Reuben Edlin and Emmelyn Wu (Corporate transactions); partner Sanjay Wavde and counsel Paul Glover (Tax); counsel Melanie Taylor and senior associate Renae Harg (Employment); and senior consultant Nicole Gardner and associate Rohan Hulonce (Dispute resolution).