Lake Resources NL (ASX:LKE) has appointed SD Capital Advisory Ltd to secure debt funding of up to US$25 million for initial lithium production from the Kachi and Cauchari lithium brine projects in Argentina.
In the lead-up to this milestone from the first stage of a commercial plant, the debt funding will also help with pre-production and definitive feasibility study (DFS) work.
Immediate focus on Kachi
The London-based advisory firm will focus on obtaining dept finance for the development of the company’s lithium brine projects with an immediate focus on Kachi, given the pre-feasibility study (PFS) will be completed before year-end.
Lake is targeting early 2020 pre-production of initial lithium products, based on partner Lilac Solutions’ direct extraction ion exchange process.
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 the company’s equity investors.
“Value-adding step”
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 and look forward to demonstrating an industry-leading solution for fast, efficient, scalable and sustainable lithium extraction from the heart of the lithium triangle.”
High-quality, low impurity product
SD Capital’s appointment follows Lake’s completion of the first pilot plant module for the Kachi project with delivery expected to site shortly after year-end.
The pilot plant has been designed by Silicon Valley-backed Lilac Solutions Inc and international engineering company Hatch to demonstrate Lilac’s ground-breaking direct extraction ion-exchange process on brines.
Lake plans to produce a high-quality product capable of attracting premium pricing with low impurities using a process without evaporation ponds.