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PERTH (miningweekly.com) – Lithium miner Galaxy Resources has subscribed for A$2.9-million in shares in fellow-listed Lepidico, giving the company a 12% stake in Lepidico.
Galaxy subscribed for more than 291.7-million shares in Lepidico, at a price of 1c a share.
The two companies said in a joint statement on Wednesday that the strategic alliance was based on a shared vision for the significant global opportunity provided by the commercialisation of Lepidico’s L-Max technology.
“We are pleased to support Lepidico as it looks to expedite the commercialisation of its L-Max technology, both financially as well as offering the benefit of our technical capabilities, industry contacts and market expertise,” said Galaxy MD and CEO Anthony Tse.
“Our alliance with Lepidico will provide us with the capability to also potentially evaluate significant mica feedstock in future. L-Max is an exciting technology and we look forward to leveraging it to unlock value, to capitalise on the ongoing growth opportunities in the lithium sector.”
Meanwhile, Lepidico on Wednesday also launched a one-for-six renounceable entitlement offer, also priced at 1c a share, to raise a further A$6-million. Some 405.2-million shares will be up for offer.
Lepidico MD Joe Walsh told shareholders that the financing package announced on Wednesday meant that the company was fully funded to complete the Phase 1 L-Max plant feasibility study, and had sufficient capital to expand the company’s mineral resource definition programme, with the object of delineating sufficient material to support a prefeasibility study for a full-scale plant.
The company was targeting production from the Phase 1 plant in 2019, and three potential sources of feed were currently being evaluated for the Phase 1 plant.