desert lion energy Lepidico
Desert Lion Energy made the largest shipment of lithium ever made from the African continent in 2018

Multi-listed Desert Lion Energy has announced that it has entered into a definitive arrangement agreement to merge with ASX-listed Lepidico.

“With strong shareholder support, the transaction with Lepidico is progressing as planned and both groups are looking forward to completing the transaction and advancing the our project,” comments Tim Johnston, CEO of Desert Lion Energy.

Desert Lion has received signed shareholder support agreements representing 61,292,342 shares, approximately 58% of the company’s total shares issued and outstanding.

Transaction highlights:

The transaction will combine two companies with highly complementary assets to create an integrated lithium business which has:

  • Lepidico’s innovative L-Max, LOH-MaxTM and S-MaxTM proprietary process technologies and offtake arrangement with Mota Ceramic Solutions from the operational Alvarrões lepidolite mine in Portugal;
  • The company’s Rubicon and Helikon deposits in Namibia and partially developed lepidolite concentrator. Mineral Resources – Indicated 3.0Mt @ 0.63% Li2O & Inferred 5.8Mt @ 0.53% Li2O (see section 14 of Desert Lion’s NI 43-101 Technical Report dated November 28, 2018, as amended and restated on December 7, 2018, for more information);
  • Lepidico’s pilot plant with L-Max and S-MaxTM capability, which is in the commissioning phase, and the Phase 1 Plant Project, at the advanced stages of feasibility study which contemplates output capacity of 5,000 tpa lithium hydroxide;
  • Battery grade lithium carbonate of 99.8% purity produced from Desert Lion lepidolite mineralisation in L-Max amenability trial; and Desert Lion’s non-binding offtake agreement for lithium hydroxide with chemicals and materials multination corporation BASF SE;
  • Lepidico will acquire all of the outstanding common shares of Desert Lion for 5.4 Lepidico shares for every 1 Desert Lion share.

Both companies are progressing on schedule for completion of the transaction by the end of July 2019, with Desert Lion’s shareholder meeting scheduled for 27 June 2019.