Lake Resources NL (ASX:LKE) has received further validation of its strategy to produce 'clean' lithium from Kachi Lithium Brine Project in Argentina by securing more funds to accelerate a definitive feasibility study (DFS) as well as for general exploration and working capital.
The company has utilised its Controlled Placement Agreement (CPA) with Acuity Capital to raise $900,000 (inclusive of costs) by agreeing to issue 15 million shares to Acuity Capital at an issue price of 6 cents per share.
The new LKE shares will be issued out of the company’s current LR7.1A capacity.
Last month the company closed an oversubscribed private placement which raised $2.55 million.
Around 85.7 million shares will be issued at an offer price of 3 cents per share to sophisticated and professional investors.
Viriathus Capital acted as sole lead manager and worked with Fresh Equities who assisted with partially underwritten cornerstone support to $1.25 million.
Funds will help complete production of larger, high purity lithium carbonate samples for downstream off-takers and testing of lithium chloride product from the pilot plant of technology partner Lilac Solutions.
Funding clean technology
Funds raised via the CPA will progress the DFS for the Kachi project which is focused on utilising clean, direct extraction technology for the development of sustainable, high purity lithium.
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.
The technique, based on a well-used ion exchange water treatment method, has been tested for more than 18 months in partnership with Lilac Solutions.
A pilot plant module operating on Kachi brines has shown 80-90% recoveries and battery-quality lithium carbonate (99.9% purity) has been produced from Kachi brine samples with very low impurities.
Proactive’s mining analyst Dr Ryan D Long explains how Lake is using disruptive technology to sustainably extract lithium from brines to produce high-purity and high-value lithium products at low cost.