- Bearing Lithium Corp. (BRZ) has entered into an agreement with Lithium Power International Limited
- LPI has agreed to acquire all of the issued and outstanding common shares of Bearing
- Bearing shareholders will receive 0.7 of an LPI share for every one Bearing share held and a cash distribution estimated at C$0.02 per share
- The transaction is subject to the approval of LPI shareholders
- Bearing Lithium Corp. is an exploration and development company focused on identifying, advancing, and de-risking lithium projects
- Bearing Lithium Corp. (BRZ) is up 27.5 per cent, trading at C$0.255 per share at 11:45 am ET
Bearing Lithium Corp. (BRZ) has entered into an agreement with Lithium Power International Limited.
LPI has agreed to acquire all of the issued and outstanding common shares of Bearing in an all share transaction.
Bearing shareholders will receive 0.7 of an LPI share for every one Bearing share held and a cash distribution estimated at C$0.02 per share.
MSB SpA (a Chilean private entity which owns a 31.31 per cent interest in the Maricunga Lithium Brine Project in Chile) has also entered into a merger agreement with LPI whereby MSB SpA will receive 161.6 million LPI shares.
The transaction is subject to the approval of LPI shareholders.
Gil Playford, Chairman and CEO of Bearing, commented on the transaction.
“The Bearing Board of Directors are in unanimous agreement with our MSB Joint Venture Partners, Lithium Power International (LPI) and Mr. Martin Borda the owner of MSB SpA to consolidate our ownership in MSB for an equity interest in ASX listed LPI, which will hold 100 per cent of the project. The officers and directors have agreed to vote in favor their stock and recommend to the Bearing shareholders to vote in favor of the transaction at the Annual and Special Shareholders Meeting to be held in September. The board firmly believes the Bearing shareholders will benefit from the numerous advantages of consolidating 100 per cent of the project into LPI as well as substantially improved liquidity of LPI.”
LPI’s Chairman, David Hannon remarked,
“We are extremely pleased to have reached an agreement with both MSB SpA and Bearing to consolidate 100 per cent ownership of Maricunga. The updated DFS released on 20 January 2022 demonstrates that Maricunga could be one of the lowest cost producers of lithium carbonate in the world, with the Project’s strong economics underpinning a highly attractive asset.”
Bearing Lithium Corp. is an exploration and development company focused on identifying, advancing, and de-risking lithium projects.
Bearing Lithium Corp. (BRZ) is up 27.5 per cent, trading at C$0.255 per share at 11:45 am ET.
