The second 12.5-million share tranche is expected to be issued this week.
Furthermore, the company notes that it has received considerable interest for the share purchase plan (SPP) underway, which closes on 28 February 2020.
Eligible shareholders are able to subscribe for up to $30,000 of additional shares priced at 4 cents under the SPP.
Proceeds to pay off debt and Kachi development work
Funds raised through the placement and the SPP will be used by Lake to make part of the cash payment required for the early close-out of the convertible securities facility.
In addition, funds will be used to:
- Produce further high purity samples from the pilot plant for downstream participants to conduct qualification testing using the Lilac direct extraction process;
- The development, construction, transport and operation of the direct extraction pilot plant;
- The optimisation of the pre-feasibility study (PFS); and
- General exploration, paying offer costs and working capital.