AMN - NAMIBIA: Approval for Desert Lion acquisition

Namibian lithium developer Desert Lion Energy has obtained a final order from the Ontario Superior Court of Justice (Commercial List) approving a statutory plan of arrangement under the Business Corporations Act (Ontario) for its acquisition. This gives the green light for a wholly-owned subsidiary of ASX-listed Lepidico Ltd to acquire all outstanding common shares of Desert Lion Energy.

The arrangement will result in holders of common shares of Desert Lion receiving 5.4 Lepidico shares for each common share held.

Receipt of the final order follows a meeting of holders of common shares held on Thursday, June 27, 2019, in Toronto, Canada, at which shareholders overwhelmingly approved the arrangement.

Assuming that the remaining conditions are satisfied or waived, it is expected that the arrangement will be completed on or about July 10, 2019.

Desert Lion Energy is focused on building Namibia’s first large-scale lithium mine about 210 kilometres from the nation’s capital of Windhoek and 220 kilometres from the Port of Walvis Bay.

The company’s Rubicon and Helikon mines are within a 501sqkm prospective land package. The project site is accessible year-round by road and has access to power, water, rail, port, airport and communication infrastructure.

Lepidico is focused on exploration, development and production of lithium chemicals. It owns the technology to a metallurgical process that has successfully produced lithium carbonate from non-conventional sources, specifically lithium-rich mica minerals including lepidolite and zinnwaldite.

The L-Max® Process has the potential to complement the lithium market by adding low-cost lithium carbonate supply from alternative sources. More recently Lepidico has added LOH-MaxTM to its technology base, which produces lithium hydroxide from lithium sulphate without by-produce sodium sulphate.

Lepidico is conducting a feasibility study for a 5,000 tonnes per annum phase 1 lithium chemical plant. Work is being undertaken to evaluate the incorporation of LOH-MaxTM into the phase 1 plant project flow sheet.

Lepidico’s exploration assets include a farm-in agreement with Venus Metals Corporation Limited over the lithium mineral rights at the Youanmi Lithium Project in Western Australia. It also has a Letter of Intent with TSX-listed Avalon Advanced Materials Inc for planned lithium mica concentrate supply from its Separation Rapids Project in Ontario, Canada.

www.desertlionenergy.com