Lepidico is still considering the US Government’s Development Finance Corporation as the lead lender for the Karibib Lithium Project development.
The Australian company announced in October 2023 that it had secured a US$50 million (N$966 million) funding package from the US government to develop the Karibib project.
Lepidico, which owns 80% of the project, needs about US$63 million to develop the mine and construct a concentrator.
The company is also developing a chemical plant in Abu Dhabi, which would require another US$200 million.
“By way of background, due to the integrated nature of the development, Development Finance Corporation ‘s due diligence includes the chemical plant despite its lending mandate being limited to Namibia as a developing economy,” Lepidico said in its half-year report released Monday.
Lepidico added that the Development Finance Corporation had advanced its due diligence to the point where key Abu Dhabi chemical plant stakeholders needed to be identified to undertake associated legal due diligence.
Lepidico further said funding processes for the Karibib project Phase 1 have taken far longer than initially envisaged, mainly due to many integrated lithium development projects requiring blended finance solutions. Jefferies Investment Bank, Lepidico said, embarked on a redirected private sector strategic partner initiative in April 2023.
Several new organisations joined the strategic partner process and actively undertook due diligence during the period.
Select commercial lenders for Karibib and the Khalifa Economic Zones Abu Dhabi chemical plant are also positioned to resume due diligence once key project stakeholders are identified.
“In parallel with these core funding activities, the existing beneficiated stockpiles at Karibib and future concentrate are being proactively marketed, following a tender process,” Lepidico said.
For the half year ending December 31, 2023, Lepidico recorded a net loss from operations of US$3,689,118 and a net cash outflow of US$3,048,278.
The Group’s net assets decreased to US$89,179,195 as at December 31, 2023, from US$92,458,261 in June 2023.
As of December 31, 2022, the company recorded a net profit of US$192,916 and a net cash outflow of US$3,854,431.
On the upside, Lepidico said it is receiving recognition for the unique opportunity that the L-Max® and LOH-Max® technologies provide for a low-energy intensity lithium chemical conversion solution with exceptional green credentials, including no solid process waste and no process effluent.
