Platypus buys lithium player

PERTH (miningweekly.com) – Junior explorer Platypus Minerals has signed a binding term sheet to acquire lithium developer Lepidico in exchange for 750-million of its own shares.

The unlisted Lepidico held a number of exploration tenements in Australia and Canada, and had an option over the Lamare project, in Canada, which had a total resource of 32.7-million tonnes, grading 1.56% lithium oxide.

Lepidico also owned the L-Max technology that had the potential to commercially extract lithium and other by-products from unconventional sources, at a competitive cost.

In conjunction with the Lepidico transaction, Platypus was looking to raise up to A$3.5-million through a rights issue to existing shareholders, with the rights issue priced at 1c a share.

Platypus chairperson Laurie Ziatas said on Wednesday that the acquisition of Lepidico and the concurrent capital raising would position the company as an emerging entity in the lithium sector, with a robust balance sheet.

“The combination of  Platypus’s current assets, Lepidico’s lithium exploration assets and the L-Max technology will provide Platypus with a sustainable competitive advantage and point of difference to other lithium juniors and allow us to create maximum value for our combined shareholders, particularly across the whole of the lithium production value chain.”

As part of its acquisition, Platypus had the right to direct Lepidico to exercise its option over the Lemare project, which would see Lepidico pay C$35 000 to the project owner by May 10 this year. Platypus would also have to issue C$500 000 worth of shares to the project owner, with Lepidico expected to pay a further C$35 000 by September this year.

Following the exercise of the option, Platypus and Lepidico could start an earn-in into the project.