Name of the Project
Karibib lithium project – Phase 1.

Location
The mine will be located in Namibia, and the chemical conversion plant in Abu Dhabi, in the United Arab Emirates.

Project Owner/s
Australia-listed lithium exploration company Lepidico.

Project Description
Karibib has ore reserves estimated at 9.4-million tonnes at 0.43% lithium oxide, 278 parts per million caesium sulphate, 2% potassium and 0.21% rubidium. The project involves the development of a vertically integrated mine and chemical conversion plant, with a production life of 19 years.

Lepidolite concentrate will be produced and shipped from Namibia to a chemical conversion plant at the Khalifa Economic Free Trade Zone industrial park, in Abu Dhabi.

The project envisages lithium hydroxide production of about 4 350 t/y, after ramp-up. Total rubidium sulphate production is estimated at 1 400 t/y, caesium sulphate production (salt basis) at 235 t/y and sulphate of potash production of 6 900 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Karibib operations have an after-tax net present value (NPV), at an 8% discount rate, of $100-million and an internal rate of return (IRR) of 27%. The chemical plant has an after-tax NPV, at an 8% discount rate, of $357-million and an IRR of 24%. The project has a payback of less than three years.

Capital Expenditure
Phase 1 preproduction capital is estimated at $266-million.

Planned Start/End Date
Not stated.

Latest Developments
Lepidico has been placed in voluntary administration following unsuccessful attempts to secure financing.

The announcement on December 5 came just days after the company had entered a trading halt earlier, pending the release of details regarding a capital raise.

The company's directors stated that despite efforts to secure funding, Lepidico was unable to raise the capital necessary to advance its key project.

In September, Lepidico appointed Jefferies International as its financial adviser to explore various strategic options for the Karibib asset. These options included the possibility of a minority equity partner, selling the asset or pursuing other deals that aligned with the company’s goals. Lepidico has also been in talks with several potential investors and governments for funding support for its Phase 1 of the project.

Key Contracts, Suppliers and Consultants
Jefferies International (financial adviser).

Contact Details for Project Information
Lepidico, tel + 61 8 9363 7800 or email info@lepidico.com.