Lepidico says it is expanding its exploration activities in Namibia to include lithium, caesium, rubidium, tantalum, gold, copper and tungsten.
This comes as the company, primarily known for its lithium exploration and development activities, reported that it had approximately N$85.6 million in cash and cash equivalents as of 30 June 2024.
According to Lepidico’s quarterly activities report, as part of its expanded exploration strategy, the company aims to extend the life of its Phase 1 project and increase its overall resource base.
“The near-term objectives of this work are to extend the operating life of the Phase 1 Project to over 20 years, expand the resource base to support the Phase 2 Scoping Study and evaluate the Karibib licenses for their gold potential,” the company said.
The company’s progress on these exploration efforts has been hindered by legal disputes over land access. Several areas of interest are currently inaccessible due to ongoing legal proceedings.
“Exploration activities during the quarter were limited to regional and reconnaissance work within ML204 and EPL5349, due to road access still being blocked to a priority drill target,” it is reported.
On the other hand, Lepidico has garnered significant interest in its lithium concentrate from the Rubicon and Helikon deposits.
The company is actively negotiating offtake agreements with potential buyers. Furthermore, Lepidico is collaborating with industry partners to develop advanced processing technologies for caesium and rubidium.
“Lepidico is now working on a binding concentrate offtake agreement with the U.S. trading company that has been marketing Karibib material since April 2023 and conducted the tender process in September 2023. Unsolicited interest in Karibib concentrate along with finance has also been received from other trading companies,” the company said.
Lepidico is also exploring the possibility of initially supplying lepidolite concentrate to third-party converters before establishing its chemical plant. This staged approach could expedite project development and reduce financial burdens.
Furthermore, the company reported the successful completion of a share placement, raising approximately N$52.1 million before costs.
The funds will be used for project financing, strategic partnerships, and working capital. However, the company is still actively seeking investment to reach N$95 million to bring its projects to fruition.
While the US Development Finance Corporation remains a preferred lender, the identification of a strategic equity partner is crucial for project advancement.
