In September 2024, Lepidico engaged Jefferies International to help maximise the value of its Karibib lithium project in Namibia. The plan then included selling the project or divesting a portion of its interests, amidst a bearish market environment.
International Lithium Corp (ILC) announced on September 9, the acquisition of an option. This option could lead to taking control of the 80% stake Lepidico holds in the Karibib project in Namibia. The transaction, valued at C975,000 (approximately US$702,000) would allow the Canadian mining company to inherit an asset containing 11.9 million of mineral resources, grading 0.45% lithium oxide.
In detail, Lepidico manages its interests in Karibib through its subsidiary, Lepidico Mauritius. Huni-Urib Holdings owns the remaining 20%. ILC could ultimately control the capital of this entity as part of the announced transaction, indirectly holding the 80% in Karibib. The deal’s finalisation is expected by November 30, subject to the conclusion of an ongoing arbitration procedure involving Lepidico regarding the project.
ILC believes exercising this option should position it “for a recovery in the lithium market.” This development indeed occurs within a bearish market context for the resource, driven by oversupply. From a peak of approximately US$80,000 per tonne in 2022, prices have since declined by over 80%. Long-term prospects, however, remain positive due to the energy transition. The IEA estimates that approximately 55 new mines will be required to meet global demand by 2035.
ILC is not the only mining player to have shown interest in Namibian lithium, despite the current market conditions. Chilean mining company SQM, the world’s second-largest producer of the white metal, recently launched a US$40 million investment program in the Lithium Ridge project. Andrada Mining operates this project in the country. SQM’s long-term objective is to acquire a 50% stake in the project.
