Lepidico Ltd (ASX:LPD) has been advised by Strategic Metallurgy (SM) that SM has recently secured A$1.29 million (gross) through the on-market sale of 35 million Lepidico shares in order to fund its growth plans.
Strategic Metallurgy, remains Lepidico’s largest shareholder and now holds 311.3 million shares (5.0% of issued capital), in what it has advised is, “a strategic long-term investment in Lepidico that it plans to retain for capital growth and in the fullness of time income.”
Mark Urbani, Director at Strategic Metallurgy, said cash proceeds will immediately be used to reduce debt following the acquisition of a building adjacent to the SM Perth office and laboratory, which is already being used for certain pilot plant operations.
“The additional capital will also allow SM to further expand its operations through business improvements and further investments.”
Lepidico’s Managing Director, Joe Walsh, said the SM business expansion plan will support ongoing work for Lepidico and ultimately allow many testwork operations to be conducted concurrently.
“Close collaboration will continue for the advancement of Lepidico’s proprietary process technologies, which include L-Max and LOH-Max. This multi-faceted work involves: ongoing pilot plant operations; design work for the Phase 1 development and Phase 2 studies; technical evaluation under third-party technology licenses; and assessment of new technologies to expand Lepidico’s industry leading intellectual property base for maximising value from processing lithium mica and phosphate minerals.
“Work is also ongoing to commercialise LOH-Max for the chemical conversion of spodumene, which has extensive industry application given the unprecedented demand growth predicted for battery materials and lithium in particular.”