Africa Critical Elements acquires 80% stake in Namibian lithium project

Africa Critical Elements Ltd (ACE) has finalized its full acquisition of Lepidico (Canada) Inc., gaining an 80% stake in a lithium, rubidium, and caesium project located near Karibib, Namibia.

Regulatory Approval and Project Structure

Following a public hearing in September and an official decision in October, the Namibian Competition Commission granted ACE approval for the merger. The remaining 20% interest in the project is held by local partner Huni-Urib.

Situated near Karibib, the project consists of two mining areas under license ML204, encompassing the Rubicon and Helikon sites. Additionally, it includes an Exclusive Prospecting Licence (EPL5439) for an adjacent area with potential for lithium, caesium, tantalum pegmatites, and gold.

Resource Estimates and Development Milestones

With approximately £13 million invested over the past decade, the project achieved its Definitive Feasibility Study (DFS) in 2020. The DFS reported a net present value of US$221 million, based on a lithium hydroxide price of US$13,677 per tonne. The Front End Engineering and Design phase concluded in 2022.

The project boasts Africa’s largest rubidium deposit and one of the world’s largest outside China, along with a significant caesium resource for a non-Chinese entity. According to the DFS, JORC (2012) Ore Reserves stand at 11.85 million tonnes, with measured and indicated resources of 46,733 tonnes lithium oxide, 22,822 tonnes rubidium oxide, and 3,076 tonnes caesium oxide.

On-site, a stockpile of around 400,000 tonnes of mineral resources exists, including 24,000 tonnes of beneficiated lepidolite concentrate with an average 1.38% lithium oxide grade. ACE plans to sell a portion of this stockpile as part of its funding strategy.

Market Outlook and Future Plans

The acquisition positions ACE to benefit from the lithium market’s recovery. Despite recent fluctuations, lithium carbonate prices have surged approximately 83% since June of the previous year.

In the coming months, ACE will update the 2020-2022 Karibib DFS and related studies, along with financial and production plans. The initial development phase will focus on domestic lepidolite concentration.

Executive Chairman John Wisbey highlighted the project’s local impact, stating, “ACE will bring new jobs to Namibia by reviving and re-energising the historic and promising project at Karibib, which is also expected to generate tax revenues from exports and employment and, in time, from profits.”

The leadership team includes John Wisbey as Executive Chairman and majority shareholder, Maurice Brooks as Finance Director, Joe Walsh as Technical Director, Ross Thompson as Non-Executive Director, and Chris Movirongo as Senior Advisor.