Lake Resources NL (ASX: LKE; OTC:LLKKF) has confirmed that the production base case will be increased to 50,000 tonnes per annum lithium carbonate equivalent (LCE) in the Definitive Feasibility Study (DFS) and the final investment decision (FID) for the Kachi Lithium Project in Argentina.
The DFS will be expanded from 25,500 tpa LCE to 50,000 tpa LCE, underpinned by an anticipated increased resource estimate from drilling results.
The formal decision has been driven by:c
1. the increasing demand by prospective offtake partners for a secure supply chain of environmentally friendly high purity lithium carbonate;
2. the indicative support to fund the project by Export Credit Agencies and the international bank panel. The UK and Canada Export Credit Agencies have already indicated a willingness to project debt finance around 70 percent of the project’s capital requirements;
3. the supportive investment policies of the Argentine Government who have announced a process to lower export taxes as part of the Strategic Plan for Mining Development;
4. the confidence of technology partner Lilac Solutions that its modular direct lithium extraction technology is scalable and cost effective.
“Given the increasing demand and the significant lithium supply gap, Lake is focused on delivering high purity lithium carbonate at scale with meaningful ESG benefits,” Managing Director, Steve Promnitz, said.
“Lake has received indicative financial support for an increase in the size of the Kachi project from the Export Credit Agencies (ECA’s) of the UK and Canada and the numerous international ECA-supported banks. Also, Lake’s technology partner, Lilac Solutions, is focused on advancing the Kachi Project at this larger scale.”
Lake’s Chairman, Stu Crow, said the independence of Lake Resources and the Kachi project added to the strategic appeal of the offtake.
“We are well placed given quality resource, leading technology and key finance partnerships to ensure an optimal set of offtake agreements that align with these expansion plans and create maximum value for our key stakeholders,” he said.
For further information please visit: https://lakeresources.com.au/
