$2.55M PLACEMENT CLOSES OVERSUBSCRIBED FOLLOWING STRONG DEMAND
$2.5M Placement Oversubscribed
Brisbane, Aug 26, 2020 AEST (ABN Newswire) - Clean lithium developer Lake Resources NL (ASX:LKE) (LK1:FRA) (LLKKF:OTCMKTS) announced today it has successfully closed a private placement oversubscribed, with commitments received to raise $2.55 million before costs. This will result in the issue of approximately 85.7 million shares at an offer price of $0.03 per share to sophisticated and professional investors (Placement). Settlement is anticipated to occur this Friday, 28 August 2020.
Viriathus Capital acted as sole Lead Manager and worked with Fresh Equities who assisted with partially underwritten cornerstone support to $1.25 million.
Funds raised from the Placement will be used to complete production of larger high purity lithium carbonate samples for downstream off-takers and testing from the lithium chloride product from the Lilac Solutions direct lithium extraction pilot plant; to initiate a definitive feasibility study (DFS) for Lake's Kachi Lithium Brine Project; general exploration; Placement costs and working capital.
As previously announced, Lake Resources has appointed Hazen Research Inc (Hazen), a Colorado-based independent assay laboratory, to produce larger samples of battery quality lithium carbonate for supply to potential off-takers and other interested parties.
Lilac Solution's lithium extraction pilot plant module has successfully processed Kachi brine with high recoveries to produce lithium chloride, which is suitable for processing into battery grade lithium carbonate using conventional carbonate processing methods. Hazen is progressing well with the conversion process and an update will be provided soon on its latest progress.
Lake's Managing Director, Steve Promnitz said: "Lake is very pleased with an efficient and successful placement by Viriathus, which will keep the momentum going once final lithium carbonate samples are completed and help start the DFS process for our flagship Kachi project. There is an increasing demand for battery quality lithium products and the direct lithium extraction method of Lilac will deliver this consistently.
"Meanwhile, Lake is continuing our discussions with a number of sector investors and supply chain participants on the back of the accelerating EV and battery storage revolution. We look forward to updating the market on the results of these talks as we advance."
About Lake Resources NL
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is a clean lithium developer utilising state-of-the-art ion exchange extraction technology for production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina among three other projects covering 220,000 ha.
This ion exchange extraction technology delivers a solution for two rising demands - high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials with low carbon footprint and significant ESG benefits.