Lithium Power International Raises A$25 Million Via Successful Placement

Lithium Power International (ASX: LPI) (“Lithium Power” or “the Company”) is pleased to announce that it has received binding commitments from institutional, sophisticated and professional investors to raise A$25 million (before costs) through a single tranche placement (“Placement”). The Placement will see the Company issue approximately 41,666,667 new fully paid ordinary shares at an issue price of A$0.60 per share (“New Shares”).

Highlights:

• Firm commitments received from institutional, sophisticated and professional investors to raise approximately A$25 million via a successful share Placement at A$0.60 per share.
• The successful Placement highlights support for the Company’s progress in Maricunga, with positive updated Definite Feasibility Study results announced earlier this year for its Stage One project.
• The Company is well-funded with pro-forma 30 June 2022 cash of A$31.5 million.
• Consolidation of 100% of Maricunga ownership as announced on 22 June 2022 progressing well with Notice of Meeting to be dispatched within the next month

Commenting on the successful capital raising, Lithium Power’s CEO & Managing Director, Cristobal Garcia-Huidobro, stated:

“The result of the capital raise is an outstanding endorsement of Lithium Power’s ambition to rapidly advance the significant Maricunga lithium asset and capitalise on the rapid global shift towards the electrification of transport and infrastructure.

Investing in green technologies is essential to ensuring the battery revolution and the delivery of clean, green energy that the world is eagerly awaiting.

The funds raised will allow Lithium Power to progress the development and accelerate the expansion of the Maricunga project, as well as general working capital purposes.

On behalf of the Company, I would like to warmly welcome new shareholders and thank existing shareholders for their ongoing support.”

Use of Proceeds

Funds raised via the Placement will primarily be used to progress with the development and expand and accelerate the Maricunga project. Specifically, funds will be applied to the operational and pre-construction costs for the 100% consolidated Maricunga project and the increased operational compliance costs associated with the acquisition of the ownership of the Chilean and Canadian joint venture partners in Maricunga project.

Placement Details

New Shares issued in the Placement will be issued at a price of A$0.60 per share, which represents a:

• 13.7% discount to the last closing price of A$0.695 on 7 September 2022;
• 5% discount to the 5-day VWAP; and
• 3% discount to the 10-day VWAP

The Placement will take place in a single tranche pursuant to the Company’s available Placement capacity under the ASX Listing Rules (34,110,679 shares under 7.1A and 7,555,988 shares under 7.1). New Shares will rank equally with the Company’s existing fully paid ordinary shares on issue.

Settlement of the Placement is expected to occur on 15 September 2022.

Canaccord Genuity (Australia) Limited acted as Lead Manager and Bookrunner to the Placement.

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