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) (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