Issue of Bonus Options to Shareholders
Brisbane, April 8, 2019 AEST (ABN Newswire) - In recognition of the support from its shareholders Lake Resources NL (ASX:LKE) ACN 079 471 980 (Lake) wishes to advise that it intends to undertake a bonus issue of options (Bonus Options) to all shareholders with an address in Australia or New Zealand (Eligible Shareholders) at 5:00 pm (Brisbane time) on the Record Date (set out in the indicative timetable set out below).
- Bonus Options will be issued for nil consideration to Eligible Shareholders at a ratio of one (1) free Bonus Option for every seven (7) shares held at 5:00 pm (Sydney time) on the Record Date (indicatively 17 April 2019).
- Bonus Options will have an exercise price $0.04 each, expiring on 15 June 2019 and, if exercised, will result in the issue of a second option (Additional Options) and each Additional Option will have an exercise price $0.10 each, expiring on 15 June 2021 and Lake intends to seek approval to list and trade the Additional Options on the ASX.
As the Bonus Options will be issued for nil consideration, Lake is raising no capital from their issue. For every seven (7) shares held at 5:00 pm (Sydney time) on the Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option.
The Bonus Options will have an exercise price $0.04 each, expiring on 15 June 2019 and, if exercised, each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake will not seek listing of the Bonus Options on ASX.
Each Bonus Option, when exercised, will result in the issue of a second option (Additional Options).
The Additional Options will have an exercise price $0.10 each, expiring on 15 June 2021 and if exercised each will result in the allotment and issue of one (1) fully paid ordinary share in Lake. Lake intends to seek approval to list and trade the Additional Options on ASX.
The indicative timetable for the issue of Bonus Options and Additional Options is as follows:
Announcement of Option Offer to ASX - 8 April 2019
Lodgement of Prospectus with ASIC - 12 April 2019
Record Date for determining entitlements under the Bonus Options issue 5:00 pm (Sydney time) - 17 April 2019
Issue of Bonus Options and despatch of new holding statements - 18 April 2019
Bonus Options Expire - 15 June 2019
Additional Options Expire - 15 June 2021
As the dates set out above are indicative only, the Company reserves the right to amend them subject to the requirements of the Corporations Act and the ASX Listing Rules. The Prospectus will be available for download from the Company's website www.lakeresources.com.au as from the date of lodgement of the Prospectus with ASIC. A paper copy may be obtained from that time free of charge, by contacting Andrew Bursill, the Company Secretary, or Sinead Teague between 8.30am and 5.00pm Sydney time) Monday to Friday on 02 9299 9690 if calling within Australia, or +61 2 9299 9690 if calling from outside Australia.
Eligible Shareholders are not obliged to take any action in relation to the issue of the Bonus Options. Holders of Existing Options will not be entitled to participate in the Bonus Option issue in respect of the Existing Options that they hold, unless those Existing Options have been validly exercised (and resulting Shares are allotted and issued) before the Record Date.
Lake's Managing Director Steve Promnitz said: "Today's announcement is aimed to thank supportive shareholders as Lake embarks on a significant milestone of the PFS for the Kachi project, the most advanced of Lake's four wholly owned lithium projects in Argentina, together with drilling at Cauchari in the same basin as the next major producer in Argentina, Ganfeng Lithium."
About Lake Resources NL
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is a clean lithium developer utilising clean, direct extraction technology for the development of sustainable, high purity lithium from its flagship Kachi Project, as well as three other lithium brine projects in Argentina. The projects are in a prime location within the Lithium Triangle, where 40% of the world's lithium is produced at the lowest cost.
This method will enable Lake Resources to be an efficient, responsibly-sourced, environmentally friendly and cost competitive supplier of high-purity lithium, which is readily scalable, and in demand from Tier 1 electric vehicle makers and battery makers.
Lake Resources NL
Jiangxi Ganfeng Lithium Co Ltd