Lithium focused Lepidico Ltd. secured standby equity capital of up to A$7.5 million for the next 26 months from Acuity Capital.

The company said Dec. 23 it may use the facility for future product research and development work, new process technology development and working capital.

As a collateral, Lepidico agreed to place 230.0 million common shares at nil consideration to Acuity Capital, and has the option to cancel the Controlled Placement Agreement and buy back the shares for no consideration.

Lepidico recently received patent protection in the U.S. for its proprietary lithium chemicals recovery method, called L-Max, which extracts lithium and certain byproducts from mica minerals to produce lithium carbonate.