Lepidico placed in administration after capital raise for Namibia project falls short
Australia-listed lithium exploration company Lepidico has been placed in voluntary administration following unsuccessful attempts to secure financing for its Karibib lithium project in Namibia.
The announcement on Thursday comes just days after the company entered a trading halt earlier, pending the release of details regarding a capital raise.
The company's directors stated that despite efforts to secure funding, Lepidico was unable to raise the capital necessary to advance its key project, leading to the decision to enter administration.
Richard Tucker and Paul Pracilio of KordaMentha have now taken over the management of the company and will continue the sale and recapitalisation campaign that Lepidico had initiated before the administration process began.
“During this time the administrators will work closely with management and employees of the companies to assess the status of operations and preserve value,” said Lepidico in a statement.
In September, Lepidico appointed Jefferies International as its financial adviser to explore various strategic options for the Karibib asset. These options included the possibility of bringing in a minority equity partner, selling the asset, or pursuing other deals that aligned with the company’s goals. Lepidico had also been in talks with several potential investors and governments for funding support for its Phase 1 project.
The Karibib project involves extracting lepidolite concentrate for conversion into lithium products. The material is slated to be shipped to a chemical conversion plant in Abu Dhabi.
The conversion plant is designed to process 6.9 t/h of concentrate, producing up to 5 700 t/y of lithium hydroxide, with 4 000 t/y to 5 000 t/y of nominal battery-grade lithium product.
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