Lepidico Ltd
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Lepidico Releases Quarterly Activities Report for Q2 2023
Lepidico, a leading lithium and caesium exploration and development company, has released its quarterly activities report for the period ending 30 June 2023. The report highlights significant developments and progress made in various aspects of the company's operations.
Development Milestones reached in Abu Dhabi and Karibib Projects
The report states that detailed design and engineering for the Abu Dhabi chemical plant has advanced significantly. This progress enables the company to place orders with major mechanical equipment vendors, marking a critical step in the project's timeline. Similarly, the Karibib concentrator's detailed design and engineering have reached a parallel stage, with orders for essential equipment such as the ball mill also being placed.
However, the execution of EPCM contracts for both the chemical plant and concentrator remains under suspension pending the securing of project finance. Despite this, the company has achieved a significant milestone with the grant of Detailed Planning Approval for the chemical plant, allowing certain site works to commence and approval applications to be submitted to other regulators.
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The company is also exploring collaboration with a leading equipment vendor for the local manufacture of crystallizers in Abu Dhabi. This strategic move aims to reduce delivery time and costs while providing an alternative fabrication jurisdiction.
Furthermore, in an effort to augment Karibib development capital, the company has initiated the marketing of previously beneficiated lepidolite stockpiles at Rubicon, seeking early cash flow.
Advancements in Exploration and Land Access
A crucial development outlined in the report is the execution of a land access agreement in July, which will allow the drilling of lepidolite-bearing pegmatites discovered in old petalite workings and outcrop within EPL5439. These identified locations are considered high-priority targets and hold significant potential for the company's future growth.
Expansion of Lithium Hydroxide Supply Negotiations
The report highlights the broadening of lithium hydroxide supply negotiations, with Electric Vehicle manufacturers joining the process. This collaboration aims to secure commitments for Phase 1 product under the binding agreement with Traxys, further strengthening the company's position in the market.
Additionally, the report mentions that all forecast annual caesium chemical production from Phase 1 is now either under a letter of intent, with key terms agreed, or has a supply agreement being drafted.
Exploration of New Markets and Cash Position
Encouraging third-party test work has uncovered a possible new application for rubidium, providing exciting prospects for the company's future product portfolio.
In terms of corporate finance, the report indicates that the company had cash and equivalents amounting to $10. 8 million as of 30 June 2023. Furthermore, an updated summary report from the Independent Engineer (IE) has been finalised and submitted to the Development Finance Corp. (DFC), marking the completion of the IE's scope of work. Collaboration with an Abu Dhabi state-owned organisation in chemical plant development is currently undergoing due diligence, with legal proceedings on hold until the chemical plant ownership structure is agreed upon.
Outlook and Future Prospects
Looking ahead, Lepidico intends to continue its evaluation process for selecting a preferred site for Phase 2 of the chemical plant. Seven prospective sites in the U. S. have been shortlisted and will undergo further evaluation this quarter. In-house assessments for potential locations in Namibia and the UAE are also ongoing.
With ongoing advancements in design, engineering, and exploration, Lepidico remains optimistic about the future of its projects and its ability to meet the rising demand for lithium and caesium in the market.
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