Australia’s Lithium Power International Ltd said on Wednesday it will spin off its Western Australia assets into a separate firm on the Australian bourse, to allow the company to focus on its flagship Chile project.
In the next six months, the demerger will create a company dedicated to exploring its WA-based hard rock lithium assets, like the Greenbushes and Pilgangoora projects.
The lithium company’s shareholders will receive the spun-out shares on a pro-rata basis via a capital reduction and in-specie distribution, the company said in a statement.
It added that the spin out will enable the company to focus its resources on developing its Maricunga Lithium Brine Project in Chile.
The company expects to complete the demerger in the first half of 2022 and is awaiting approval of shareholders as well as regulators.
(By Savyata Mishra; Editing by Arun Koyyur)