Lithium Power drops lawsuit after Chile says it can apply for a lithium permit
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Lithium Power International has dropped its lawsuit against the Chilean government after it was told it can now apply for a special operating licence for its Maricunga lithium project.
The news sent shares up 22 per cent to an intra-day high of 33c this morning.
Lithium Power (ASX:LPI) launched legal proceedings against the government early this year after they issued a permit to state-owned copper giant Codelco over tenements already owned by Lithium Power’s joint venture company.
The “special lithium operation contract” was issued under the new mining code. Lithium Power wanted to know whether Codelco would be allowed to exploit the lithium on its landholding.
However, three months of talks between Lithium Power’s JV company and the government have resulted in the company now being told they can apply for a special lithium operation contract over the Litio tenements that are subject to the new mining code.
The other tenements that make up the Maricunga project are covered under the old mining code and are not affected.
The special lithium operation contract is the final approval needed for Lithium Power to produce lithium under the new Chilean legislation.
The company plans to submit its application in August.
Lithium Power could not comment further on the matter.