08 May Lepidico and Desert Lion merge to form vertically integrated lithium company
Lithium companies Lepidico and Desert Lion Energy have announced they will join forces to create a ‘global leader in the development of lithium chemicals from lepidolite’.
Perth-based Lepidico will acquire all of Desert Lion’s outstanding common shares after the two entered into a definitive arrangement agreement.
“The transaction will create a vertically integrated lithium development company from mine to chemical conversion plant by combining Lepidico’s leading proprietary lithium processing technologies with Desert Lion’s lepidolite mineral resources and extensive exploration package,” said Lepidico.
Lepidico’s lithium processing technologies including the L-Max and S-Max processes, along with the recently conceived LOH-Max process, which produces lithium hydroxide from lithium sulphate.
The company’s Phase 1 Plant project, located in Ontario, is at the advanced stage of its feasibility study and has potential output capacity of 5,000 tonnes per year of lithium hydroxide.
Meanwhile, Desert Lion will provide battery grade lithium carbonate of 99.8% purity from its 80% owned large-scale lithium operation in Namibia. The purity of the lithium carbonate was confirmed following L-Max amenability testwork carried out by Lepidico’s consulting partner Strategical Metallurgy.
“The Desert Lion transaction will provide Lepidico with a direct controlling interest in its first quality lepidolite deposit under an awarded mining license, providing a clear path to development,” said Lepidico’s MD Joe Walsh.