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Raises $1m in Placement
Raises $1m in Placement
Brisbane, April 9, 2019 AEST (ABN Newswire) - Lake Resources NL (ASX:LKE) announced today that it has secured commitments to raise approximately A$1 million before costs in an private placement to sophisticated and professional investors.

- Lake has secured commitments for a private placement of A$1 million.

- Lake welcomes new offshore investors together with domestic investors.

- Funds to be used mainly for Cauchari drilling advancement.

Under the placement, the Company will issue of approximately 20,000,000 new fully paid ordinary LKE shares (Offer Shares) at $0.05 cents per share (Placement) to sophisticated and professional investors using its existing placement capacity under ASX Listing Rules 7.1 and 7.1A.

Funds raised through the Placement will be used by Lake for further drilling at Lake's Cauchari Lithium Brine Project. If the new drill rig is , then the rig will move to drilling at the Olaroz Project. Funds will also be used as part of the PFS at the Kachi project and additional working capital.

Investors are reminded of the bonus option offer available to eligible shareholders, announced yesterday.

Lake's Managing Director Steve Promnitz said: "Lake welcomes the new and current investors and thanks them for their support. Ganfeng Lithium, the #2 lithium producer, has just spent US$160 million to increase its holding to 50% of Cauchari with Lithium Americas and then signed a 10 year lithium supply deal with Volkswagen for EV batteries. Lake is drilling in the same basin 400m from the production area of Ganfeng at Cauchari. We are keen to get the new rig going."


About Lake Resources NL

Lake Resources NL (ASX:LKE) is a lithium exploration and development company focused on developing its three lithium brine projects and 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 (~200,000Ha) secured in 2016 prior to a significant 'rush' by major companies. The large holdings provide the potential to provide consistent security of supply demanded by battery makers and electric vehicle manufacturers.

The Kachi project covers 69,000 ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project in Catamarca Province. Drilling at Kachi has confirmed a large lithium brine bearing basin over 20km long, 15km wide and 400m to 800m deep. Drilling over Kachi (currently 16 drill holes, 3100m) has produced a maiden indicated and inferred resource of 4.4 Mt LCE (Indicated 1.0Mt and Inferred 3.4Mt) within a 8-17 Mt LCE exploration target (refer ASX announcement 27 November 2018).

A direct extraction technique is being tested in partnership with Lilac Solutions, which has shown 80-90% recoveries and lithium brine concentrations in excess of 3000 mg/L lithium and is planned to be trialled on site in tandem with conventional methods as part of a PFS to follow the resource statement. Scope exists to unlock considerable value through partnerships and corporate deals in the near term.

The Olaroz-Cauchari and Paso brine projects are located adjacent to major world class brine projects either in production or being developed in the highly prospective Jujuy Province. The Olaroz-Cauchari project is located in the same basin as Orocobre's Olaroz lithium production and adjoins Ganfeng Lithium/Lithium Americas Cauchari project, with high grade lithium (600 mg/L) with high flow rates drilled immediately across the lease boundary.

Two drill rigs are currently drilling at Cauchari with results anticipated to extend the proven resources in adjoining properties into LKE's area with results anticipated from November into December 2018. This will be followed by drilling extensions to the Olaroz area in LKE's 100% owned Olaroz leases.

Significant corporate transactions continue in adjacent leases with development of Ganfeng Lithium/Lithium Americas Cauchari project with Ganfeng announcing a US$237 million for 37% of the Cauchari project previously held by SQM. Nearby projects of Lithium X were acquired via a takeover offer of C$265 million completed March 2018. The northern half of Galaxy's Sal de Vida resource was purchased for US$280 million by POSCO in June 2018. These transactions imply an acquisition cost of US$55-110 million per 1 million tonnes of lithium carbonate equivalent (LCE) in resources.

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.

  


Contact

Steve Promnitz
Managing Director
Lake Resources N.L.
T: +61-2-9188-7864
E: steve@lakeresources.com.au



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