Advisor Appointed for Debt Funding
Brisbane, Oct 9, 2019 AEST (ABN Newswire) - Lithium explorer and developer Lake Resources NL (
ASX:LKE) (LK1:FRA) announced today the appointment of financial advisors, SD Capital Advisory Limited, to secure debt funding of up to US$25 million for pre-production, definitive feasibility studies (DFS) and initial production of lithium products from the first stage of a commercial plant from its 100%-owned Kachi Lithium Brine and Cauchari Lithium Brine Projects in Argentina.
- SD Capital Advisory Limited appointed to secure debt funding of up to US$25 million for initial lithium production from its Kachi Lithium Brine Project and Cauchari Lithium Brine Project in Argentina, together with completion of the DFS.
- Company targeting early 2020 pre-production of initial lithium products, based on partner Lilac Solutions' direct extraction ion exchange process.
London headquartered SD Capital Advisory Limited is an independent financial advisory firm which focuses specifically on emerging markets, and its principals have previously worked for major financial institutions and corporations sourcing medium to long term financing solutions across broad industry sectors including resources and energy.
SD Capital Advisory Limited will focus on obtaining debt finance for the development of Lake's 100%-owned lithium brine projects with an immediate focus on Kachi given the Pre-Feasibility Study (PFS) will be completed before year-end.
Lake is assessing a range of funding solutions through debt or investment directly at the project level in order to minimise any potential dilution to Lake's equity investors.
SD Capital Advisory Limited's appointment follows Lake's announcement of the completion of the first pilot plant module for the Kachi project, with delivery expected shortly after year-end to site. The pilot plant has been designed by Silicon Valley-backed Lilac Solutions Inc and international engineering company Hatch and will demonstrate Lilac's groundbreaking direct extraction ion exchange process on brines produced at Kachi (refer ASX release 23 September 2019). Lake plans to produce a high quality, low impurity product capable of attracting premium pricing with low impurities using a process without evaporation ponds.
Lake's Managing Director, Steve Promnitz said: "Lake's project development plans are now rapidly advancing and sourcing the necessary project funding is a major value-adding step as we look to complete initial production modules after the pilot plant results become known. We are confident these results will prove successful.
"We look forward to demonstrating an industry-leading solution for fast, efficient, scalable and sustainable lithium extraction from the heart of the Lithium Triangle, home to the world's lowest cost production, and now we have an experienced project and debt finance advisor to support us."
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.
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