Lepidico - Convertible bond acquired with DLI fully retired
On 7 December, Lepidico announced that it had established a strategic collaboration with the UK’s Cornish Lithium (CLL, a private company) according to which it has granted CLL an exclusive licence over its L-Max and LOH-Max technologies (plus 100m options) for C$4.0m. Proceeds of the deal have allowed Lepidico to retire all of its convertible bond debt (see page six of our 5 November note Enter the US government), protecting shareholders from unnecessary convertible dilution, as well as confirming a parallel path by which to commercialise its technology. The news comes less than a fortnight after Galaxy announced that it had ceased to be a substantial shareholder in Lepidico (indicating an ever-waning overhang of stock in the market) and leaves Lepidico as the obvious choice for investors looking to gain exposure to CLL in public markets. Lepidico’s shares advanced 12.5% on the news in Australia.Lepidico is engaged in mineral exploration and the development and licensing of L-Max® technology. Co.'s lithium portfolio of exploration and commercial ventures include the Lemare project in Canada; the Euriowie project near Broken Hill in New South Wales, Australia; Third Element Metals Pty Ltd, a joint venture in Brazil; a joint venture in Argentina; and L-Max® licence arrangements with Lithium Australia Ltd. and European Metals Holdings Limited. Co. also retains its interest in the East Pilbara Polymetallic project, which is located in the East Pilbara region of Western Australia. The L-Max® process allows the extraction and recovery of lithium from lithium bearing micas.
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