Lepidico Considers Sale or Partnership for Karibib Lithium Project

Australia-listed Lepidico is actively exploring strategic options to maximize the value of its Karibib lithium project located in Namibia. To facilitate this process, the company has enlisted Jefferies International as its financial adviser. Lepidico's strategic review includes a range of potential actions: the company is considering bringing in a minority equity partner, selling the asset, or pursuing other deals that align with its long-term objectives. The evaluation of proposals from potential partners will focus on their certainty, sustainability, and overall benefit to shareholders, with binding proposals expected by October.

The Karibib lithium project is a key asset for Lepidico, and the company is keen on leveraging its full potential. The strategic review process is intended to identify the most effective path forward, whether through a partnership that provides additional resources and expertise or through a sale that could unlock substantial value. By working with Jefferies International, Lepidico aims to ensure that it explores all viable options and secures the best possible outcome for its shareholders.

In addition to exploring these strategic options, Lepidico is simultaneously seeking funding support from various governments for its integrated Phase 1 project. This project is a crucial component of the company's strategy, involving the production and transportation of lepidolite concentrate from Namibia to a chemical conversion plant in Abu Dhabi. The conversion plant, with a capacity of 6.9 tonnes per hour, is designed to process the concentrate and produce up to 5,700 tonnes per year of lithium hydroxide.

Phase 1 of the project is expected to deliver significant output, with estimates ranging from 4,000 to 5,000 tonnes per year of nominal battery-grade lithium product. This phase also includes the production of a range of high-value and bulk by-products. One of the standout features of the Phase 1 project is its environmental sustainability. The operation is designed to generate no solid process waste, aligning with modern standards for sustainable mining and production practices.

Lepidico's dual approach of exploring strategic options for the Karibib project while simultaneously advancing its Phase 1 project underscores the company's commitment to enhancing value and driving growth. By securing a strategic partner or completing a sale, Lepidico aims to strengthen its financial position and operational capabilities. At the same time, obtaining government support for Phase 1 will facilitate the development of a key project that is set to contribute significantly to the company's future success.

As Lepidico navigates these critical decisions, the company's focus remains on ensuring that it maximizes value for its shareholders while advancing its strategic goals. The outcome of the ongoing review and funding efforts will play a pivotal role in shaping the future trajectory of Lepidico and its role in the global lithium market.