Platypus executes Share Sale Agreement with Lepidico

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Platypus Minerals has announced the execution of a formal Share Sale Agreement with Lepidico Ltd and its directors, which was based on the binding term sheet entered into by the two companies on March 2016.

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Under the agreed terms, Platypus will acquire all the outstanding shares in Lepidico for consideration of 750,000,000 ordinary Platypus shares. As parties to the Share Sale Agreement, the directors of Lepidico have now formally agreed to sell their shares in Lepidico to Platypus.

According to the ASX release by Platypus, the combined interest of Lepidico’s directors represents 59.1% of the issue share capital in Lepidico

The acquisition of Lepidico remains conditional on a number of conditions, including:

  • The remainder of Lepidico’s shareholders executing agreements to sell their shares in Lepidico to Platypus
  • Platypus completing its due diligence on the Lemare project
  • Platypus undertaking a capital raising by way of an underwritten right issue to raise at least $3.3 million
  • Platypus obtaining shareholder approval at a General Meeting to complete the acquisition
  • No breach of agreement, no material adverse change and obtaining any third party or regulatory approvals that may be required

Platypus Managing Directors Tom Dukovcic said the two companies continue to work together to advance the Lepidico and Platypus assets and corporate opportunities as the acquisition proceeds towards completion.

“The execution of the Share Sale Agreement was the most significant hurdle in moving toward completion of this acquisition. It demonstrates that the key shareholders and directors of Lepidico share the conviction of Platypus that working in unison will lead to optimal growth opportunities and returns to all shareholders,” Mr Dukovcic added.

“The acquisition of Lepidico will provide Platypus with it desired exposure to the full spectrum of the lithium sector, including prospective ground positioning in Canada, Brazil and Australia and ownership of the L-Max technology. With Lepidico, Platypus will have a real and valuable point of difference in the emerging yet burgeoning lithium sector.”

Lepidico is a public unlisted lithium company. Its current exploration assets include an option over the Lemare project in Canada, ownership of the Eurowie project near Broken Hill in NSW, and a joint venture agreement with Crusader Resources to jointly exploit lithium opportunities in Brazil, including Crusader’s Manga prospect. The company also owns the L-Max technology, a metallurgical process that extracts lithium from non-conventional sources, specifically Li-rich minerals such as lepidolite and zinnwaldite.

Perth-based Platypus Minerals is dedicated to the exploration and development of mineral projects prospective for copper, gold and other strategic metals in both Australia and overseas. The focus is on projects that exhibit proven mineralisation, are under-explored, and have the potential to generate deposits and to deliver returns to shareholders.