Lepidico and Desert Lion Energy have completed their merger, with work now set to launch at the combined company’s lithium project in Namibia.
The plan of arrangement was announced in May and involves Lepidico acquiring all outstanding common shares of Desert Lion.
As a result of the agreement, Lepidico now holds an 80 per cent interest in the Karibib lithium project in Namibia, which covers approximately 1000 square kilometres.
Two drill rigs have already arrived at the site with drilling expected to start imminently.
Lepidico also announced that feasibility study work to integrate the Karibib lithium project with the company’s Phase 1 plant project study commenced earlier this week.
The Phase 1 Plant project has a potential output capacity of 5000 tonnes per year of lithium hydroxide.
The company has also announced the arrival of 15 new employees in Namibia to begin work within the coming week.
Lepidico’s managing director Joe Walsh said the closing of the transaction provided a direct controlling interest in the company’s first quality lepidolite deposits under an awarded mining licence, providing a clear pathway to development.
“The transaction supports Lepidico’s strategy to fast track the business to free cash flow generation… and become a globally significant, vertically integrated lithium chemical producer,” he said.
Desert Lion brings to the table its battery-grade lithium carbonate of 99.8 per cent purity, which 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, with no planned changes to Lepidico’s board of directors.