Australia-listed lithium explorer Lepidico Ltd said on Wednesday it had received an arbitration notice from chemicals maker Jiangxi Jinhui Lithium relating to an offtake agreement between its Namibia-based unit and the Chinese firm.
Toronto-based Desert Lion Energy, which was acquired by Lepidico in 2019 and renamed Lepidico Chemicals Namibia, had signed the offtake deal with Jinhui in November 2017 for the sale of stockpiled material from its Karibib project in Namibia.
The notice, filedunder the arbitration rules of the Singapore International Arbitration Centre, includes a claim in the sum of $4.6 million, which is the payment received from Jinhui as part of the offtake deal, Lepidico said.
Lepidico is contemplating counterclaims against Jinhui and believes the arbitration is without merit, it added.
(By Ayushman Ojha; Editing by Subhranshu Sahu)