International Lithium Corp. (ILC) has acquired an option from Lepidico (Canada) Inc. to purchase 100% of the shares of Lepidico (Mauritius) Ltd. on a debt-free basis for N$12.2 million (CAD$975,000), along with contingent future payments linked to potential receipts by Lepidico Canada.
Lepidico Mauritius holds an 80% stake in Lepidico Chemicals Namibia (Pty) Ltd., the owner of the Karibib lithium, rubidium and cesium project in Namibia.
ILC said exercising the option would accelerate its development timeline compared to other projects in Zimbabwe and strengthen its position in the lithium, rubidium and cesium markets.
Chairman and CEO John Wisbey said the agreement represented an important step for the company. “This potential acquisition marks a significant advancement for ILC globally – particularly in Southern Africa.
With this single transaction for a project that reached the Definitive Feasibility Study stage under JORC in 2020 and was upgraded in 2022, the Company would leapfrog, by several years, the development stage of other projects we are interested in, including those in Zimbabwe.”
As part of the agreement, ILC has provided a secured loan of N$6.4 million (CAD$510,000) to Lepidico Canada, of which N$5.3 million (CAD$420,000) accrues interest at 10% per annum.
The company reported that N$3.57 million (CAD$285,000) has already been advanced, with the balance subject to regulatory approvals and conditions ensuring no debt remains within Lepidico Mauritius or its subsidiaries.
The option agreement is valid until 30 November 2025, or 30 days after the conclusion of an arbitration dispute in Singapore involving Lepidico Namibia and Jiangxi Jinhui Lithium Co. Ltd.
Depending on the outcome, 30% of net proceeds would remain with Lepidico, with 70% payable to Lepidico Canada.
“Assuming the transaction goes ahead with ILC exercising its option, ILC will be well-positioned for an upswing in the lithium market, as well as strengthening its stance as one of the leading global players in the rubidium market and a company with some of the most significant cesium interests of any non-Chinese company,” Wisbey said.
The Karibib Project includes the Rubicon and Helikon deposits and an adjacent exclusive prospecting licence (EPL5439).
It has been under development since Lepidico’s 2019 acquisition of Desert Lion Energy, with investments covering drilling, environmental studies, feasibility assessments and updated resource estimates, the most recent published on 31 December 2022.
