Lepidico says its priority is to secure finance for the sub-US$50 million Karibib lithium project and mineral concentrator.
The Karibib lithium project remains one of the most advanced hard rock lithium development projects globally, with front-end engineering and design complete and all requisite permits in place.
As at September 30, 2024, Lepidico held US$2.7 million in cash and cash equivalents.
During the quarter, the company implemented further cash-saving measures, including cutting down jobs in Namibia and encouraging remaining staff to take annual leave to reduce the company’s liabilities.
In addition, the company has reduced its workforce effective October 1, 2024, which will decrease employment costs.
The Karibib Camp remains under care and maintenance, with a downsized staff complement mainly working from home.
Exploration activities during the quarter were limited to regional and reconnaissance work within license 204 and EPL 5349.
Lepidico says it has incurred significant expenditures relating to the preparation for the arbitration hearing about the dispute with Jinhui, which will be heard in early November.
Jiangxi Jinhui Lithium demands US$5 million paid to Desert Lion for the 2017 offtake agreement, which expired on November 16, 2022.
The arbitration hearing has been provisionally set for early November 2024.
Lepidico says the current net operating cash flow level will decrease after the arbitration hearing.
Lepidico has engaged Jefferies International Limited to expand and maximise the value of the Karibib lithium project.
This includes many deal structures, from possible minority equity partners to asset sales, based on a collaborative development approach.
On the basis that the Jefferies process is successful, Lepidico expects to be able to continue its operations and meet its business objectives.
The company is pursuing a strategy of maximising the value of its exploration properties by implementing programs targeted at a range of metals for which the Namibian tenements are prospective, including lithium, caesium, rubidium, tantalum, gold, copper, and tungsten.
Work programs span a range of activities, from regional exploration assessing conceptual targets to mineral resource development.
The near-term objectives of this work are to extend the operating life of the Karibib Project to over 20 years and expand the resource base to support an expansion of Karibib to 120,000 tons per year of concentrate.
The mines ministry has renewed Lepidico’s 5439 for two years since June 9, 2024.
Lepidico Chemicals Namibia has held EPL5439 for 7 years.
Over this time, Lepidico Chemicals Namibia has identified multiple lithium and gold targets within the 165 km2 exploration area, and Berger’s lepidolite prospect is now ready for drilling.
Renewal of Berger acknowledges Lepidico Chemicals Namibia’s geology team’s encouraging exploration results and technical expertise.
Historical open pit workings define Berger’s prospect, approximately 20 m x 10 m, which exposes a lepidolite-bearing pegmatite that resembles Helikon mineralisation.
The pegmatite was originally prospected for tourmaline, not its lithium mineral potential. Berger’s is one of several historical works observed over a 1.5 km Berger’s length developed on a series of stacked pegmatites, 1 m to 10 m thick.
The entire zone shows strong fractionation indicative of LCT-type lithium mineralisation.
Initial orientation drilling is planned at Berger’s ahead of scout drilling of the rest of the prospective zone.
Along with the EPL renewal process, Lepidico has been negotiating a land access agreement with a local stakeholder to allow Berger’s beer’s pegmatite to be dug deeper.
In parallel with the EPL renewal process, Lepidico has been negotiating a land access agreement with a local stakeholder to allow the deeper dug of Berger’s beer’s pegmatite.
Access to the Berger’s target is via a public road connecting two private farms. One of these farms has a locked gate across the road that prevents access.
In September 2024, the High Court in Namibia ruled in favour of Lepidico Chemicals Namibia to allow public access to the road.
Lepidico Chemicals Namibia is now engaging with the relevant authorities to have the decision of the Court upheld.
Exploration activities during the quarter were limited to regional and reconnaissance work within license 204 and EPL 5349.
The company will scale up exploration once ground access is secured and subject to funding.
