Lithium explorer Lithium Power (ASX:LPI) said that its Maricunga lithium project in northern Chile is progressing to a feasibility study, after amending its preliminary economic assessment outcomes.
Chief Executive Officer Martin Holland said the study meets international standards and the operating expenditure estimate places Maricunga in the lower quartile on the cost curve.
The project plan is to produce 20,000 tonnes per annum of lithium carbonate, with production of 74,000 tonnes per annum of potassium chloride after three years.
The capital investment of the project is approximately US$504 million, with an additional $US23 for a plant.
The company raised $35.6 million from institutional and sophisticated investors in recent weeks to help fund the project.
Shares in Lithium Power (ASX:LPI) closed 8.9 per cent lower on Friday to $0.56.