ILC Critical Minerals has given itself until 27 February 2026 to decide whether to proceed with the acquisition of Lepidico (Mauritius) Ltd and has provided an additional N$2 million in working capital to secure the extension.
Lepidico owns the Karibib lithium, rubidium and caesium project.
The Vancouver-based company said on 26 January 2026 that it had extended the option period originally agreed in September 2025, allowing additional time to assess the implications of an adverse international arbitration ruling and to complete the necessary exchange and regulatory approval processes in both Canada and Namibia.
The option gives ILC the right to acquire 100% of Lepidico Mauritius from Lepidico (Canada) Inc. Lepidico Mauritius owns 80% of Lepidico Chemicals Namibia (Pty) Ltd, the Namibian company that holds a 100% interest in the Karibib lithium, rubidium and caesium project near Karibib.
The remaining 20% of the Namibian operating entity is locally held, in line with Namibia’s empowerment requirements.
Since the option and a related loan agreement were put in place, Lepidico Namibia has suffered a significant legal setback.
On 29 December 2025, the company disclosed that it had received an adverse arbitration determination from the Singapore International Arbitration Centre in a dispute with Jiangxi Jinhui Lithium Co., Ltd. of China over a lithium offtake agreement concluded in 2018.
Although the original offtake agreement was governed by Ontario law, the arbitration was conducted in Singapore and presided over by a tribunal comprising two Chinese academics resident and working in China, and one Singaporean arbitrator. ILC said the outcome has raised complex legal questions that require careful consideration, alongside the need to secure exchange approvals and regulatory consents in both jurisdictions.
In return for the option extension, ILC has agreed to provide additional working capital funding totalling CAD$145,000, equivalent to about N$2 million.
Should the option to acquire Lepidico Mauritius be exercised, these payments will be without recourse to Lepidico Canada.
If the option is not exercised, the funds will be added to the secured loan balance and interest owed by Lepidico Canada to ILC.
The Karibib project remains central to the transaction and is one of the more advanced lithium developments in Namibia outside the uranium sector.
A feasibility study completed in 2021 under the JORC Code outlined a polymetallic development incorporating lithium, rubidium and caesium, positioning Karibib as a rare speciality metals project with potential exposure to both battery and high-technology markets.
ILC cautioned that it currently holds only an option and is treating the Karibib project as historical information rather than a current resource attributable to the company.
A final decision on whether to proceed will depend on the resolution of legal issues arising from the arbitration outcome, regulatory approvals and a reassessment of commercial viability.
ILC, formerly International Lithium Corp., has in recent years refocused its strategy around a portfolio of lithium, rubidium, copper and other critical minerals assets, with its primary operational emphasis now in Canada.
Its flagship asset is the Raleigh Lake lithium and rubidium project in Ontario, covering approximately 32,900 hectares and owned outright, free of royalties or encumbrances.
A preliminary economic assessment published in December 2023 estimated a post-tax net present value of CAD$342.9 million, equivalent to about N$4.8 billion, and a post-tax internal rate of return of 44.3% for the lithium component alone, based on a spodumene price of US$2,350 per tonne.
As of 23 January 2026, the spot spodumene price stood at about US$2,214 per tonne, underscoring ongoing price volatility in the lithium market.
In addition to Raleigh Lake, ILC holds a 90% interest in the Firesteel copper-cobalt project in Ontario and is advancing early-stage lithium exploration at Wolf Ridge. The company also retains residual economic exposure to several projects it has divested, through net smelter royalties and milestone payments linked to future resource development.
Southern Africa remains a strategic target region. ILC has identified Namibia as a key jurisdiction for lithium and speciality metals development and has also applied for exclusive prospecting orders in Zimbabwe.
The board said further announcements on portfolio developments are expected over the coming weeks and months.
ILC framed its longer-term strategy against rising global electricity demand driven by artificial intelligence, data centres, electric vehicles and grid-scale energy storage, alongside increasing policy pressure in the United States, Canada and the European Union to secure domestic and allied supplies of strategic minerals.
Should ILC ultimately exercise its option, the Karibib project would return to the centre of its growth strategy alongside Raleigh Lake and Firesteel, with further development in Namibia becoming a high priority, subject to legal clarity and commercial reassessment, the company said.
