Lepidico to raise N$917m for Karibib lithium projects
Capitalising on increasing demand
The Karibib project, which is 80% owned by Lepidico, involves the redevelopment of two historical lithium mines and the establishment of a processing facility designed to produce high-grade lepidolite concentrate.
Lithium miner Lepidico has announced that its primary objective for the remainder of the calendar year is to secure US$50 million, equivalent to N$917 million, for Phase 1 of the development of its Karibib mining projects in Namibia. This funding is crucial for advancing the company's ambitions in the lithium sector, particularly as global demand for lithium continues to rise due to its essential role in battery production for electric vehicles and renewable energy storage.
In a quarterly update, Lepidico indicated that the funds would be allocated specifically towards the development of a mine and mineral concentrator at the Karibib site. “Our main priority is to secure finance for the now-sub US$50 million mine and mineral concentrator in Namibia, initially with lepidolite concentrate supply to third-party converters," the company said.
The Karibib project, which is 80% owned by Lepidico, involves the redevelopment of two historical lithium mines and the establishment of a processing facility designed to produce high-grade lepidolite concentrate. This concentrate will be vital for the company's plans to supply lithium hydroxide and other critical minerals, including caesium and rubidium, to the growing battery market.
Ongoing engagement
Lepidico has identified the Development Finance Corporation (DFC) as its preferred lender for the Namibian project, highlighting the DFC's ongoing engagement in discussions regarding financial support. The company is actively pursuing strategic partnerships with multiple groups to enhance the development of the Karibib project.
Additionally, Lepidico reported significant progress in a technical, environmental and social independent due diligence exercise conducted by the DFC. The company noted: “Positive feedback from DFC towards the Phase 1 project continued to be received during the June 2024 quarter, which in part is understood to be associated with its unique attributes as a supplier of all three critical minerals - lithium, caesium and rubidium".
As part of its strategy, Lepidico is also in the process of securing an offtake agreement with lithium producers.
“A binding concentrate offtake agreement is under negotiation and represents a priority to provide strategic equity partners that have undertaken considerable due diligence, with the necessary confidence to make a commitment," the company said.