Lithium companies Lepidico and Desert Lion have announced they will merge to create a “global leader in the development of lithium chemicals from Lepidolite.”
The companies have entered into a definitive arrangement agreement whereby Lepidico will acquire all of Desert Lion’s outstanding common shares.
The transaction of 5.4 Lepidico ordinary shares for every 1 Desert Lion share will create a vertically-integrated lithium development company, according to a Lepidico announcement.
This will combine Lepidico’s lithium processing technologies, including the L-MAX, LOH-Max and S-Max, with Desert Lion’s lepidolite mineral resources and exploration package.
Perth-based Lepidico will continue its global interest in the exploration and operation of lithium assets through the agreement, capitalising on Desert Lion’s large-scale lithium operation in Namibia.
Desert Lion holds an 80 per cent interest in the project within its exclusive prospecting licence, which covers 301 square kilometres and consists of three past producing mines.
The transaction combines the two companies’ complementary assets that also include Lepidico’s pilot plant, which is in the commissioning phase.
Lepidico’s assets includes the Phase 1 Plant project, which is at the advanced stage of its feasibility study and has potential output capacity of 5000 tonnes per year of lithium hydroxide.
Desert Lion will bring to the table its battery-grade lithium carbonate of 99.8 per cent purity that is produced from its lepidolite mineralisation, according to a L-Max amenability trial.
The merged company will be called Lepidico and will be headquartered in Perth. There are no planned changes to Lepidico’s board of directors.