Lepidico has set a top priority to secure financing for its under-$50 million Karibib lithium project and mineral concentrator in Namibia, one of the world’s most advanced hard rock lithium projects.
With front-end engineering and design finalized and all necessary permits granted, the project is positioned to move forward pending financial support.
As of September 30, 2024, Lepidico held $2.7 million in cash reserves. To conserve funds, the company implemented cost-cutting measures, including workforce reductions in Namibia, encouraging staff to use annual leave, and downsizing employment costs as of October 1, 2024.
Currently, the Karibib Camp is maintained by a reduced workforce, with many staff members working remotely.
Exploration activity this quarter was limited to regional and reconnaissance work on license areas 204 and EPL 5349.
Lepidico is also preparing for an arbitration hearing in early November 2024 regarding a dispute with Jiangxi Jinhui Lithium, which claims $5 million over a 2017 offtake agreement with Desert Lion that expired in November 2022. The company expects operating cash flow to improve post-arbitration.
To support financing efforts, Lepidico has partnered with Jefferies International Limited to explore various deal structures to maximize project value.
These options include attracting minority equity partners or asset sales. Successful financing would enable Lepidico to continue operations and achieve its business goals.
In addition to advancing Karibib, Lepidico is pursuing a broader exploration strategy targeting multiple minerals, including lithium, caesium, rubidium, tantalum, gold, copper, and tungsten across its Namibian tenements.
Its goal is to extend Karibib’s operational life to over 20 years, aiming to increase concentrate output to 120,000 tons annually.
In June 2024, Namibia’s Ministry of Mines renewed Lepidico’s EPL5439 for two more years. This 165 km² license has revealed several lithium and gold targets, including the Berger’s lepidolite prospect, which is prepared for drilling.
Berger’s contains stacked pegmatites indicative of lithium-rich mineralization, resembling Helikon’s formations. Initial orientation drilling will begin soon, followed by broader scout drilling.
Securing access to the Berger’s target required legal action; in September 2024, Namibia’s High Court ruled in Lepidico’s favor to ensure public access via a road blocked by a locked gate on private farmland.
Lepidico Chemicals Namibia is coordinating with authorities to enforce the court’s decision and resume exploration activities.
With financing in sight and legal access established, Lepidico is poised to advance Karibib and Berger’s exploration, ultimately aiming to scale up operations and enhance its mineral resource base.
