PERTH (miningweekly.com) – ASX-listed Lepidico has settled its plans to acquire TSX-V-listed Desert Lion Energy, after shareholders in the Canadian company approved the share offer.
Lepidico in May launched a takeover offer for Desert Lion, offering 5.4 of is own shares for every one Desert Lion share held to create a vertically integrated lithium development company, which will combine Lepidico’s proprietary lithium processing technologies with Desert Lion’s lepidolite mineral resource and exploration acreage in Namibia.
Under the terms of the agreement, Lepidico has issued more than 571.1-million fully paid ordinary shares to the existing Desert Lion shareholders, as well as 39.1-million new options at an exercise price ranging from 2c to 3.5c, and 139.7-million warrants with an exercise price ranging from 4c to 4.4c.
Lepidico has also issued more than 76-million new fully paid ordinary shares to some of Desert Lion’s creditors in settlement of debt arrangements.
Desert Lion has applied to delist from the TSX-V.
“Closing of this transaction is transformative for Lepidico as it provides the company with a direct controlling interest in its first quality lepidolite deposits under an awarded mining license, providing a clear path to development,” said Lepidico MD Joe Walsh.
He noted that 15 new employees have also been added in Namibia, along with two drill rigs that have arrived at the Karibib lithium project, to start work over the coming days.
Feasibility work to integrate the Karibib lithium project with Lepidico’s Phase 1 plant project study has already started. The pilot plant trialing the L-Max and S-Max technology will have a capacity to produce some 5 000 t/y of lithium hydroxide.