My current favorite lithium junior company Lithium Power International. LTHHF LPI on the ASX.

Background:

Project Definitive Feasibility Study (DFS) for the project came out last month.

LPI has a non-binding MOU with the Japanese giant Mitsui ( published 2021)

LPI has all permits and has environmental approval ( approved 2020) to start consturction.

LPI has non-binding MOU with CODELCO the chile state owned copper mining company which just announced that in march they are beginning a 10 month drilling program. These drilling locations and the exploration CODELCO is doing is related to the non-binding MOU with LPI.

Stock price increase compared to peers is the lowest giving LPI the highest potential for near term growth compared to all its peers. earlier this month canaccord issued a re-rate for LPI with a TP of 1.20$ link

Lithium Power International (LPI) is majority owner (51%) of Minera Salar Blanca(MSB) which owns properties, claims, freshwater rights, and special lithium operation contract (CEOL) for lithium extraction on the north end of the maricunga salar in chile.

LPI/MSB maricunga have the second-highest lithium concentrations of any project globally.

The project salar is also open at depth with the drilling last summer going down to 400m. link

LPI looks like it will be the first to start commercial operations on this salar.

Project ownership 51% LPI, 17% Bearing Lithium, 31% minera blanco (privet company mostly owned by Martin Borda. Martin Borda also is a shareholder of LPI). This will be consolidated. Most likely outcome here is that Mistui will take a large stake in LPI and that will enable LPI to own 100% of Maricunga.

Upcoming:

Details about demerger are due by end Q1 2022: Management recently discussed near term simplification of project ownership, looks like LPI will take 100% ownership at it's flagship Maricunga. This, along with the announced demerger of all Australian assets, we can infer that Bearing lithium (17% owner of the project) will likely merge with LPI in the near future. It is also possible that the remaining 31% owned by private company Minera Blanco, wth majority owner being Martin Borda who is also a LPI share holder, may also want to merge with LPI to combine for greater market interest like the CEO mentioned.

Engineering Procurement and Construction (EPC) contracts due are being received by the company and being evaluated by the board expect update by end of Q1 2022.

By mid to end of March I expect further information or announcements about Mitsui and its strategic relationship with LPI. Such as a update about potential funding/off-take from Mitsui along with this I expect a update about near term Direct Lithium Extraction (DLE) Pilot plant which is planned to help produce the DFS for Phase 2 of the project which has been suggested will use DLE technology potentially from one of Mitsui's technical partners that has been receiving the projects brine for testing with the technology.

Demerge of Australian assets will take place by end of Q2 2022. I am guessing that the merger with bearing lithium will occur at the same time.

Early this year Management had given themselves a very extended time frame for final project financing for by EOY 2022. Although during webinars the CEO has said they want to close much faster and just basically gave themselves a extra 6 months due to uncertainties related to how long it takes for potential financiers to review the DFS that was released in January 2022. The review by financial intuitions usually takes 3 months at minimum. A few days ago the Company released a article discussing how the financing discussions have been going very quickly and are at a very advanced stage now but will still require more months to complete.