Desert Lion Energy Inc. said Aug. 31 that it ceased all operations in Namibia due to falling lithium carbonate prices.
The company recently received a phase-two license for mining in situ material from its lithium project in the country. The license, granted for an initial 10 years, covers 68.7 square kilometers, which includes the area where the company's Rubicon and Helikon mines are located.
Desert Lion's board is re-assessing a previously announced three-stage execution plan and is reviewing all options to support the project's continued development.
Additionally, the company initiated talks with its off-take partner, Jiangxi Jinhui Lithium Co. Ltd., to revise the pricing metrics under their previously announced deal, to reflect the current pricing environment.
Jinhui agreed to purchase the entire lithium concentrate product from phase one of Desert Lion's production plan, estimated at between 150,000 and 160,000 tonnes, for 12 to 18 months.
Desert Lion, meanwhile, will announce a maiden resource estimate and preliminary economic assessment before the end of the third quarter.