Acquisition of Option to Buy Lepidico's Interest in Karibib Lithium, Rubidium and Cesium Project in Namibia
Acquisition of Option to Buy Lepidico's
Interest in Karibib Lithium, Rubidium and
Cesium Project in Namibia
Vancouver, British Columbia--(Newsfile Corp. - September 9, 2025) - International Lithium Corp. (TSXV:
ILC) (OTCQB: ILHMF) (FSE: IAH) (the "
Company
" or "
ILC
") is pleased to announce that on September
04, 2025 it acquired an option from Lepidico (Canada) Inc. ("Lepidico Canada") to buy 100% of the
shares of Lepidico (Mauritius) Ltd. ("Lepidico Mauritius")
on a debt-free basis for consideration of
CAD$975,000 plus certain payments in the future that are contingent on and linked to various possible
receipts by Lepidico Canada. Lepidico Mauritius in turn owns 80% of Lepidico Chemicals Namibia (Pty)
Ltd. ("Lepidico Namibia"), which owns the Karibib Lithium, Rubidium and Cesium project in Namibia.
Assuming the transaction goes ahead with ILC exercising its option, the Company would leapfrog, by
several years, the development stage of other projects it is interested in, including those in Zimbabwe
and:
have one of the largest rubidium resources in Africa and (per our own research and also using
Grok) the largest disclosed rubidium resource in Africa, as well as one of the most extensive
rubidium resources in North America through ILC's existing Raleigh Lake project in Ontario;
be well-positioned for an upswing in the lithium market; and
strengthen its stance as one of the leading global players in the rubidium market and a company
with some of the most significant cesium interests of any non-Chinese company.
The parties have signed a secured loan agreement whereby ILC lends CAD$510,000 to Lepidico
Canada. Of the principal amount, CAD$420,000 accrues interest at 10% per annum. If ILC exercises the
option, this loan plus interest will be repayable in full from the option exercise proceeds. The option has
been granted until the later of November 30, 2025, and 30 days after the arbitration outcome is known
(see below). A total of CAD$285,000 has already been advanced to Lepidico. There are various
conditions for the drawdown of the remaining CAD$225,000, including standard regulatory approvals
and a key condition that, by drawdown, there will be no debt owed by Lepidico Mauritius or its
subsidiaries to its ultimate Australian parent, Lepidico Ltd., which is in liquidation. A condition in the
option agreement is that Lepidico Mauritius and its subsidiaries will have no debt owed to other previous
Lepidico group companies at the time of option exercise.
It is important to emphasize that there is a possibility that the option may not be exercised, especially if
Lepidico Namibia encounters an adverse outcome in an arbitration dispute with the Chinese company
Jiangxi Jinhui Lithium Co. Ltd., which involves claims and counterclaims. This arbitration in Singapore is
expected to conclude in September or October 2025. Conversely, if the arbitration is resolved positively,
ILC and Lepidico Canada have agreed that 30% of the net proceeds after legal and other costs will be
retained by the part of the Lepidico group that ILC would be acquiring, with the remaining 70% paid to
Lepidico Canada. The deal structure reflects ILC's reluctance to assume the risk of a negative arbitration
award concerning events that occurred seven years ago.
Lepidico's ownership of Karibib resulted from its 2019 acquisition of TSXV-listed Desert Lion Energy in
exchange for shares and other securities valued at that time at AUD$ 22.9 million (approximately
CAD$20.7 million). Since acquiring the company in 2019, Lepidico has invested a further AUD$ 12.1
million (approximately CAD$ 10.9 million) in the Karibib project, excluding central group overheads, with
a significant portion directed towards drilling, an environmental study and subsequently a Definitive
Feasibility Study and a further Resource Estimate.
The Karibib Project comprises two areas near Karibib, Namibia, with fully permitted mining licences
known as Rubicon and Helikon (also in various reports spelled Helicon), along with an Exclusive
Prospecting Licence EPL5439 for an adjacent area.
A Definitive Feasibility Study (the "DFS Report") was announced on May 28, 2020 by Lepidico Ltd. (a
public company then listed on the Australian Securities Exchange) based on JORC Code (2012) Mineral
Resources and Ore Reserves estimates for the Rubicon and Helikon deposits. The DFS Report is titled
"Phase 1 Project - Definitive Feasibility Study Report", and has a publication date of July 10, 2020. It
was produced by Lepidico Ltd. who managed the feasibility study listing around 28 organisations with
particular expertise in the specific areas of input as contributors to the DFS Report. The DFS Report and
ASX announcements regarding the Karibib project, including resource estimates and other pertinent
information to the Karibib project are available on Lepidico's website:
www.lepidico.com
.
In Lepidico's news release dated January 30, 2023 Lepidico announced an overall Karibib Project
Mineral Resource update as of 31 December 2022 prepared by Cube Consulting which is detailed in
the following table. The numbers in this table (the "Historical
Estimate") are subject to various
assumptions and parameters which are detailed later in this announcement. The Company is not aware
of any more recent estimates.
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Although the technical information announced by Lepidico was produced according to the requirements
of JORC Code (2012), ILC is treating this information as historical information. The Company does
however believe, and this thinking was part of its decision to proceed with the transaction, that the
mineral resource estimates are likely to be reliable and relevant firstly since JORC Code (2012) is one
of the most widely recognized and respected mineral resource reporting standards globally, and
secondly there has been no mining activity since the last resource estimate. ILC has not engaged a
"Qualified Person" as defined by NI 43-101 to independently verify or complete sufficient additional work
to determine the relevance and reliability of the information. The Company's QP has not done sufficient
work to make the resource current and the Company is not treating the resource as current. Only if the
option is exercised would ILC, at its own discretion, complete the further technical work and review and
evaluation of the information and data supporting the Lepidico information in the DFS Report and/or the
Lepidico mineral resource estimates to bring them to current for ILC under NI 43-101. Mineral resources
are not mineral reserves and although Lepidico has reported a Definitive Feasibility Study for the
project, there is no guarantee that further work will result in an economic mining scenario.
It is believed, based on published data, that as well as its significant lithium resource, the Karibib project
contains the largest (or one of the two largest) rubidium resources of any project in Africa (the others
being in Zimbabwe and Zambia). At the same time, the amount of cesium is smaller but nevertheless
equal to about one year of global demand. For cesium Sinomine has historically been the largest
producer in Africa, and has recently restarted cesium production at its Bikita project in Zimbabwe by
extracting pollucite from petalite tailings. Sinomine is also known to have rubidium from the lepidolite at
Bikita, but we are not aware of any resource estimate.
If the option is exercised, ILC would, subject to confirming the resource as its own resource (and not a
historical resource as it is presently treating it) have the largest known or at least the largest disclosed
rubidium resource in Africa. The Company also has extensive rubidium resources in North America
through its Raleigh Lake project in Ontario. Please refer to the Company's "The Raleigh Lake Project -
NI 43-101 Technical Report PEA" dated January 18, 2024 by ERM Consultants Canada Ltd. and the
seven named QPs in the report. This report was filed on SEDAR+ on 18 January, 2024.
John Wisbey, Chairman of ILC, stated:
"This potential acquisition marks a significant
advancement for ILC globally - particularly in Southern Africa. With this single transaction for a
project that reached the Definitive Feasibility Study stage under JORC in 2020 and was
upgraded in 2022, the Company would leapfrog, by several years, the development stage of
other projects we are interested in, including those in Zimbabwe."
"Assuming the transaction goes ahead with ILC exercising its option, ILC will be well-
positioned for an upswing in the lithium market, as well as strengthening its stance as one of
the leading global players in the rubidium market and a company with some of the most
significant cesium interests of any non-Chinese company."
Babak Vakili Azar, P. Geo., a Qualified Person as defined by NI 43-101 and a consultant to ILC, has
reviewed and approved the technical contents of this news release.
Notes on the Historical Estimate mentioned above
The mineral resource estimates presented in the table above (the "Historical Estimate") were
documented as subject to the following assumptions and parameters:
There are multiple effective dates, reflecting work on various hard rock deposits and stockpiles
over a four year period by multiple consulting groups.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant issues.
Mineral Resources for hard rock deposits are reported at a block cut-off grade of ≥ 0.15% or
0.20% Li
2
O for all oxidation types.
Mineral Resources for stockpiles, dumps and tailings are reported at a 0.0% Li
2
O cut-off grade.
The analysis suite across the deposits and stockpiles was inconsistent and hence average
element reporting across all deposits and stockpiles cannot be completed.
Different components of the Karibib Project have been reported at different times through different
consultancy groups, using different Competent Persons.
The assumed mining method is by open cut.
Cost, bulk density and recovery inputs used to report the Mineral Resource have varied over time,
and relate to the different effective dates for those individual resources.
Figures may not add up due to rounding.
The Historical Estimate reports categories of mineral resource using the terms "inferred mineral
resource", "indicated mineral resource" and "measured mineral resource" as ascribed under JORC
Code (2012). These terms also have specific meanings ascribed to them by the Canadian Institute of
Mining, Metallurgy and Petroleum, as the CIM Definition Standards on Mineral Resources and Mineral
Reserves adopted by CIM Council, as amended. These standards are generally considered
interchangeable in the global mining industry with key differences pertaining to disclosure being that NI
43-101 has more prescriptive requirements for the content of technical reports while JORC allows more
flexibility in reporting but requires clear explanation of the basis for estimates.
The Historical Estimate is considered to be the most recent and pertinent technical disclosure regarding
the Karibib project that is currently available to the Company. If the Company decides to exercise the
option,
the Company will review the technical reports utilizing Qualified Persons as defined by NI 43-101
to determine which, if any at all, of the mineral resource estimates require additional work to comply with
the CIM Definition Standards on Mineral Resources and Mineral Reserves prior to advancing the project
or undertaking the necessary work to upgrade or verify the Historical Estimate as current mineral
resources or mineral reserves.
About International Lithium Corp.
International Lithium Corp. has exploration activities in Ontario, Canada, with intentions to expand into
Southern Africa. It has projects at various stages, ranging from Definitive Feasibility Study at Rubicon in
Namibia (note that ILC currently has an option only and is treating this as historic information at this point
and not a current resource for ILC) to Preliminary Economic Assessment at Raleigh Lake (as noted
above) to Pre-Drilling at Wolf Ridge. The primary target metals in Canada are lithium, rubidium and
copper. There are three projects (two in Ontario and one in Ireland) in which ILC has sold its share but
where we stand to receive future payments from either a resource milestone being achieved or from a
Net Smelter Royalty. In Namibia the Karibib project contains lithium, rubidium and cesium.
While the world's politicians are currently divided on the future of the energy market's historic
dependence on oil and gas and on "Net Zero", there is in any scenario an ever increasing and significant
demand for electricity driven by AI and data centres, and by a likely unstoppable momentum towards
electric vehicles and grid-scale electricity storage. All these contribute to rising demand for lithium and
copper as well as other metals. Rubidium is also a valuable critical metal that is strategic for high-
precision clocks and for space technology. We have seen the politically driven and increasingly urgent
wish by the USA, Canada, EU and other major economies to safeguard their supplies of critical metals
and to become more self-sufficient. Our Canadian and Southern African projects, which contain lithium,
rubidium, cesium and copper, are strategic in that respect.
Our key mission for the next decade is to generate revenue for our shareholders from lithium and other
battery metals, as well as rare metals, while also contributing to the creation of a greener, cleaner planet
and less polluted cities.
This includes optimizing the value of our existing projects in Canada as well as finding, exploring and
developing projects that have the potential to become world-class deposits. We have announced that we
regard Southern Africa as a key strategic target market for ILC and, in addition to Namibia, we have
applied for and hope to receive EPOs in Zimbabwe. We hope to make further announcements on the
portfolio developments over the next few weeks and months.
The Company's interests in various projects now consist of the following, and in addition, the Company
continues to seek other opportunities:
Name
Metal
Location
Stage
Area in Hectares
Current
Ownership
Percentage
Future
Ownership
% if options
exercised
and/or
residual
interest
Operator or
JV Partner
Rubicon +
Helikon +
Exclusive Prospecting
Licence
Lithium
Rubidium
Cesium
Karibib, Namibia
2021 : Feasibility
Study completed
for Li, Rb and Cs
29,500
0 %
80%
Lepidico; ILC if
option exercised
Raleigh Lake
Lithium
Rubidium
Ontario
Dec 2023 : PEA
for Li completed
Apr 2023 Maiden
Resource
Estimates for Li
and Rb
32,900
100%
100%
ILC
Firesteel
Copper
Cobalt
Ontario
Aeromagnetics
and Drilling
started mid 2024
6,600
90%
90%
ILC
Wolf Ridge
Lithium
Ontario
Pre-Drilling
5,700
0%
100%
ILC
Mavis Lake
Lithium
Ontario
May 2023
Maiden Resource
Estimate
2,600
0%
0%
(carries an extra
earn-in payment
of AUD$ 0.75
million if resource
targets met)
Critical Resources
Limited
(ASX:CRR)
Avalonia
Lithium
Ireland
Drilling
29,200
0%
0%
2.0% Net Smelter
Royalty
GFL Intl Co Ltd.
(owned by
Ganfeng Lithium
Group Co. Ltd)
Forgan/
Lucky Lakes
Lithium
Ontario
Drilling
< 500
0%
0%
1.5% Net Smelter
Royalty
Power Minerals
Limited
(ASX:PNN)
The Company's primary strategic focus at this point is on the Raleigh Lake Project, comprising lithium
and rubidium, and the Firesteel copper project in Canada, as well as obtaining EPOs and mineral
claims in Zimbabwe. The Karibib projects in Namibia, including further development on the EPL there,
will become a high focus if ILC exercises its option there.
The Raleigh Lake Project now encompasses 32,900 hectares (329 square kilometres) of mineral claims
in Ontario and represents ILC's most significant project in Canada. To date, drilling has occurred on less
than 1,000 hectares of our claims. A Preliminary Economic Assessment was published for ILC's lithium
at Raleigh Lake in December 2023, with a detailed economic analysis of ILC's separate rubidium
resource still pending. Raleigh Lake is 100% owned by ILC, free from any encumbrances and royalties.
The Raleigh Lake Project boasts excellent access to roads, rail, and utilities.
A continuing goal has been to remain a well-funded company to turn our aspirations into reality.
Following the disposal of the Mariana project in Argentina in 2021, the Mavis Lake project in Canada in
2022, and the Avalonia project in 2025, ILC continues to achieve sufficient inward cash flow to be able to
make progress with its exploration projects.
With the increasing demand for high-tech rechargeable batteries used in electric vehicles, electrical
storage, and portable electronics, lithium has been designated "the new oil" and is a key part of a green
energy, sustainable economy. By positioning itself with projects that have significant resource potential
and solid strategic partners, ILC aims to be one of the preferred lithium and rare metals resource
developers for investors and to continue building value for its shareholders for the rest of the 2020s, the
decade of battery metals.
On behalf of the Company,
John Wisbey
Chairman and CEO
www.internationallithium.ca
For further information concerning this news release, please contact +1 604-449-6520 or
or
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release or other releases contain certain "forward-
looking information" within the meaning of applicable securities law. Forward-looking information or
forward-looking statements in this or other news releases may include: the timing of completion of any
offering and the amount to be raised, the likelihood or otherwise of the Company exercising its option
on Lepidico Mauritius, the outcome of arbitration involving Lepidico Namibia, the effect of results of
anticipated production rates, the timing and/or anticipated results of drilling on the Karibib or Raleigh
Lake or Firesteel or Wolf Ridge projects, the expectation of resource estimates, preliminary economic
assessments, feasibility studies, lithium or rubidium or copper recoveries, modeling of capital and
operating costs, results of studies utilizing various technologies at the company's projects, the
Company's budgeted expenditures, future plans for expansion in Southern Africa and planned
exploration work on its projects, increased value of shareholder investments in the Company, the
potential from the Company's third party earn-out or royalty arrangements, the future demand for
lithium, rubidium, cesium and copper, and assumptions about ethical behaviour by our joint venture
partners or third party operators of projects or royalty partners. Such forward-looking information is
based on assumptions and subject to a variety of risks and uncertainties, including but not limited to
those discussed in the sections entitled "Risks" and "Forward-Looking Statements" in the interim and
annual Management's Discussion and Analysis which are available at
www.sedarplus.ca
. While
management believes that the assumptions made are reasonable, there can be no assurance that
forward-looking statements will prove to be accurate. Should one or more of the risks, uncertainties or
other factors materialize, or should underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking information. Forward-looking information herein,
and all subsequent written and oral forward-looking information are based on expectations, estimates
and opinions of management on the dates they are made that, while considered reasonable by the
Company as of the time of such statements, are subject to significant business, economic, legislative,
and competitive uncertainties and contingencies. These estimates and assumptions may prove to be
incorrect and are expressly qualified in their entirety by this cautionary statement. Except as required
by law, the Company assumes no obligation to update forward-looking information should
circumstances or management's estimates or opinions change.
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