PERTH (miningweekly.com) – ASX-listed Lithium Australia and takeover target Lepidico have settled litigation for the right to exploit a lithium extraction process called SiLeach.
Lithium Australia last year launched legal proceedings against a subsidiary of Lepidico in the Supreme Court of Western Australia, resulting in Lepidico filing a counter claim alleging that Lithium Australia had developed the process without authorisation, and had exploited Lepidico’s intellectual property of its L-Max technology.
Lithium Australia on Monday told shareholders that, while the commercial terms of the settlement will remain confidential, the three L-Max licence agreements Lithium Australia had with Lepidico remain valid and enforceable.
Lepidico has also agreed that Lithium Australia’s SiLeach process is not an improvement, enhancement or modification of the L-Max process.
“We are pleased with the outcome which allows Lithium Australia to pursue its strategy of building a global lithium business without unnecessary distractions or legal impediments,” said MD Adrian Griffin.
“We can now continue with the business of delivering further positive results for our shareholders,” he added.
Lithium Australia earlier this month launched a A$23.8-million off-market script bid for Lepidico, offering one of its own shares for every 13.25 Lepidico shares.
Meanwhile, Lepidico on Monday reported that a prefeasibility study (PFS) into a strategically located Phase 1 L-Max plant has confirmed the viability of the project.
The 3.6 t/h 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.
“The PFS results are a huge endorsement of L-Max and demonstrate a clear pathway for Lepidico to become a low-cost lithium carbonate producer in a relatively short period of time,” said Lepidico MD Joe Walsh.
“The lithium-mica [concentrate] represents an opportunity to develop high-quality assets with only limited competition, due to Lepidico owning the process technology.”
Walsh said on Monday that the positive PFS results have provided the company with the confidence to commit to a definitive feasibility study, once financing is secured, with the study likely to take nine months to complete.