Lithium Power (ASX:LPI)
has revealed its plans to spin off its Western Australian hard rock lithium in the next six months.
The split will create a separate entity which will look to list on the ASX. The lithium company said the demerger will create a WA-focused lithium exploration company and enable Lithium Power to focus on developing its Maricunga lithium brine project in Chile.
"LPI believes that there is a compelling strategic rationale for the demerger of LPI’s WA hard rock lithium exploration assets. The demerger will offer existing LPI shareholders the opportunity to create long term value via a new, ASX-listed company," said chief executive officer Cristobal Garcia-Huidobro.
Lithium Power's WA assets are currently held by its subsidiary Lithium Power WA Holdings (DemergeCo). DemergeCo will apply for admission to list on the ASX in conjunction with the demerger.
The company expects the demerger process to be completed in the first half of this year.
Shares in Lithium Power (ASX:LPI)
are trading 1.7 per cent higher at $0.59.