PERTH (miningweekly.com) – Takeover target Lepidico has advised shareholders not to take any action, after fellow-listed Lithium Australia formally launched a takeover offer for the company overnight.
Lithium Australia in early February flagged its intention to launch a A$23.8-million off-market scrip bid for Lepidico.
Lithium Australia was offering Lepidico shareholders one of its own shares for every 13 shares held.
Lepidico on Friday said the board will now review Lithium Australia’s bidder statement, and will reply with a formal response in due course. In the meantime, shareholders have been urged not to take any action.
However, Lepidico has maintained its stance that the offer is highly opportunistic in light of the company’s significant near-term news flow, including the prefeasibility results of the Phase 1 L-Max plant.
The 3.6 t/h Phase 1 processing plant is expected to produce some 3 000 t/y of battery-grade lithium carbonate and a suite of valuable by-products from a lithium-mica concentrate sourced from third-party suppliers.
Based in Kenora, Canada, the plant is expected to require a capital investment of between $35-million and $40-million.