Lake Resources Completes Oversubscribed Capital Raise
- Completion of A$1,200,000 capital raising via private Placement heavily oversubscribed
- Offer increased due to substantial demand from sophisticated, professional and institutional investors
- LKE well-funded to unlock the substantial value from its lithium brines and pegmatite asset base in Argentina
The placement was completed as follows:
1. 24,000,000 fully paid LKE ordinary shares at $0.05 per share ("Shares"); and
2. 12,000,000 options exercisable at $0.10 each and expiring 18 months after date of issue ("Options").
The Placement was significantly oversubscribed and increased to accommodate substantial demand from a broad range of new investors. Lake is grateful for this support and welcomes new shareholders to the register. Proceeds from the Placement will be used to continue the Company's aggressive exploration programme in Argentina to ensure value and optionality is maximised from its portfolio of lithium exploration assets.
Lake aims to initiate a drill program at the Kachi Project in Catamarca Province in the near term and continue advancing exploration activities across the rest of its portfolio.
The new Shares will rank equally with existing ordinary shares on issue and the Company will seek ASX listing of issued Options.
APP Securities Limited was appointed lead manager for the Placement issue. Fees will include the issue of 1,500,000 Options on the same terms as the Placement. Settlement of the Placement is expected to occur on Friday, 24 February 2017 with the Shares and Options to be allotted on Monday, 27 February 2017.
Steve Promnitz, Managing Director of Lake Resources, commented: "We are delighted with the outcome of the capital raising and are grateful for the level of support from new investors and some existing shareholders.
"Lake's portfolio of prime lithium brine projects and pegmatite assets in Argentina are in outstanding locations and we look forward to maximising value from the portfolio. We are now well funded to complete an initial drill programme in Catamarca and accelerate its broader asset development programme.
"We look forward to reporting a steady stream of news on our exploration results and other initiatives as we progressively unlock the value of our large asset base in Argentina."
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About Lake Resources NL
Lake Resources NL (ASX:LKE) is a lithium exploration and development company focused on developing its 3 lithium brine projects and 1 hard rock project in Argentina, all owned 100%. The leases are in a prime location among the lithium sector's largest players within the Lithium Triangle where half of the world's lithium is produced. Lake holds one of the largest lithium tenement packages in Argentina (~180,000Ha) secured in 2016 prior to a significant 'rush' by major companies. The large holdings provides the potential to provide security of supply demanded by battery and electric vehicle manufacturers located.
The three key brine projects, Olaroz/Cauchari, Paso and Kachi, are located adjacent to major world class brine projects either in production or being developed in the highly prospective Jujuy and Catamarca Provinces. The Olaroz-Cauchari project is located in the same basin as Orocobre's Olaroz lithium production and adjoins SQM/Lithium Americas Cauchari project, where high grade lithium (600 mg/L) with high flow rates have been drilled immediately across the lease boundary. The Kachi project covers 50,000 Ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project.
Drilling at Kachi has confirmed a large lithium brine bearing basin over 25km long and over 400m deep. Drilling over Kachi is aimed to produce a resource statement later in 2018. Drilling will commence in coming months at Olaroz-Cauchari now that tenure has been confirmed in a landmark agreement in March 2018. This will provide several catalysts for the company's growth. Scope exists to unlock considerable value through partnerships and corporate deals in the near-term.
Significant corporate transactions continue in adjacent leases with development of SQM/Lithium Americas Olaroz/Cauchari project with an equity/debt investment over $300 million and Advantage Lithium's equity transaction in some of Orocobre's leases. LSC Lithium has also raised over $60 million on a large lease package in similar areas as Lake's properties. Nearby projects of Lithium X were recently acquired via a takeover offer of C$265 million completed March 2018.
The demand for lithium continues to be strong for lithium ion batteries in electric vehicles, according to recent data from the leading independent battery minerals consultant - Benchmark Mineral Intelligence. Supply continues to be constrained suggesting good opportunities for upstream lithium companies for many years.
Lake Resources NL