Lake’s Kachi Lithium Brine Project Now Fully Funded
Lake Resources NL (ASX:LKE) has received commitments for A$20.6 million from institutional investors in a capital raising to support its Kachi Lithium Brine development in Argentina and lithium chloride extraction in the USA.
The company intends to use the net proceeds from the Placement as follows:
- operate the lithium chloride direct extraction Pilot plant in California;
- commission the Demonstration Plant on site at Kachi to produce larger samples for off-takers;
- complete the Definitive Feasibility Study (DFS) at Kachi;
- complete the Environmental and Social Impact Study (ESIA) at the Kachi Project; and
- exploration and evaluation studies across all projects and working capital.
Roth Capital Partners, LLC (Roth) acted as sole placement agent.
“This is a transformational moment for Lake and its shareholders,” Lake Resources Chairman Stu Crow said.
“We are excited to secure this support from North American, European and Australian institutional investors at this defining moment of the company’s development.
“Roth Capital has introduced a number of new investors to Lake who follow the rapidly growing clean tech battery materials sector and will broaden our exposure to international financial markets. We welcome Roth Capital to our team.“
Lake Resources Managing Director, Steve Promnitz, said securing these funds delivers certainty to deliver the flagship Kachi project through the Definitive Feasibility Study amid the rapid growth of the clean energy sector.
“This transaction places the company in its strongest financial position ever. Lake will hold in excess of A$25 million following this placement and anticipates a further A$6m to be added by July as existing options convert.”
Lake Resources NL is a clean lithium developer utilising direct extraction technology for the production of sustainable, high purity lithium from its flagship Kachi Project within the Lithium Triangle. This direct extraction method delivers a solution for two rising demands of electric vehicle batteries – high purity battery materials to avoid performance issues, and sustainable, responsibly sourced materials.