Lithium Power International Ltd. entered binding contracts for the sale of its Centenario lithium project in Argentina to Albertson Resources Pty. Ltd.
Albertson's nominee Centenario Lithium Ltd. has paid A$1 million to the company as initial payment to acquire Lithium Power International Holdings (Argentina) Pty. Ltd., which holds the properties.
At completion, expected on April 30, 2018, Centenario will pay an additional A$3 million in cash, according to the Dec. 4 release.
Lithium Power will also receive a A$375,000 success fee when a maiden JORC-compliant resource of at least 250,000 tonnes of lithium carbonate equivalent is estimated.
The deal includes a royalty of 1.5% on gross revenues earned from Centenario for a period of 20 years, starting on completion of a definitive feasibility study.
