Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to advise that that Desert Lion
Energy Inc. (TSXV: DLI) (“Desert Lion Energy”) has obtained a final order from the Ontario
Superior Court of Justice (Commercial List) approving a statutory plan of arrangement (the
“Arrangement”) under the Business Corporations Act (Ontario) pursuant to which a wholly owned subsidiary of Lepidico will acquire all of the outstanding common shares of Desert Lion Energy (the “Common Shares”).
Pursuant to the Arrangement, holders of Common Shares will receive 5.4 Lepidico shares for each Common Share held. Receipt of the final order follows the annual and special meeting of Desert Lion Energy holders of Common Shares held on Thursday, June 27, 2019 in Toronto, Canada, at which shareholders overwhelmingly approved the Arrangement.
The closing of the Arrangement remains subject to the satisfaction of various administrative
conditions. It is expected that the Arrangement will be completed on or about July 10, 2019.
Management teams for Lepidico and Desert Lion Energy plan to travel to Namibia to ensure a
smooth transition and commence exploration activities immediately following the closing.
Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) advises that Pilot Plant leach discharge
filter operations commenced as per the schedule on 27 June but operations were
temporarily suspended that evening due to degradation of the filter cloths. Subsequent
engagement with the filter Original Equipment Manufacturer (OEM) revealed that nylon
rather than the specified polypropylene filter cloth had been supplied. The OEM has
undertaken, “to provide [Strategic Metallurgy] with replacement cloth under a matter of
urgency” and that, “the fastest shipment method will be employed to deliver them to site.”
In the interim, alternative filtration equipment that is on site is being used to allow Pilot
Plant commissioning on concentrate feed to advance to the point where the next filter
downstream is required.
Operating costs for the Pilot Plant will not be materially impacted during shutdowns and this
advanced commissioning phase. Once the replacement parts are received it is estimated
that normal Pilot Plant operations will be able to resume within 24 hours.
Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to advise that Desert Lion
Energy Inc (“Desert Lion”) shareholders approved the acquisition by Lepidico of all of the
outstanding common shares of Desert Lion at its annual general and special meeting of
shareholders (the “AGM”) held on Thursday, June 27, 2019 in Toronto, Canada. Desert Lion
shareholders will receive 5.4 Lepidico shares for each common share of Desert Lion held (the
At the AGM, a special resolution approving the Transaction was approved by 99.22% of the
votes cast at the meeting in person or by proxy. The Transaction, which will be effected by
way of a Plan of Arrangement under the Business Corporations Act (Ontario), is subject to
receipt of court and regulatory approvals. The court hearing for the final order to approve
the Transaction is scheduled to take place on July 4, 2019.
The Transaction is expected to be completed by mid-July 2019