Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) has drilling underway at the flagship Kachi Lithium Brine Project in Argentina as part of development activities required for the fully-funded definitive feasibility study (DFS).
Geophysical studies have assisted in the planning of shallow wells up to 60 metres deep.
These will be followed by further geotechnical studies, in addition to recent works conducted on proposed sites for the direct lithium extraction demonstration plant and for the future production plant.
An additional 20,000 litres of Kachi brines will be extracted and shipped for further processing at the plant module of technology partner Lilac Solutions in California.
This data is a key part of the DFS, which formally started earlier this month.
“Interest never stronger”
Lake aims to sustainably produce the cleanest quality lithium carbonate at scale, with demand rapidly increasing for battery materials for use in the fast-growing battery market as the adoption of electric vehicles accelerates globally.
Managing director Steve Promnitz said: “Lake has started 2021 on the front foot by formally launching our Kachi DFS and ramping up engagement with investors and potential industry partners.
“Interest in the sector has never been stronger in environmentally responsible, direct lithium extractions.”
CPA extension with Acuity Capital
In November 2020, the company extended its existing Controlled Placement Agreement (CPA) with Acuity Capital with the expiry date now January 31, 2023, and funding increasing by $5.5 million.
Lake utilised its CPA with Acuity Capital and raised A$3,375,000 (inclusive of costs) by agreeing to issue 40 million LKE shares to Acuity Capital at an issue price of A$0.0844 cents from the company’s LR7.1A capacity.
The issue price represents a 13.6% discount to the 15 trading day VWAP of A$0.0977 to January 18, 2021.
Funds raised will be used towards the Kachi DFS, further exploration and working capital.
Leading battery researcher Novonix continues its test-work on Lake’s high purity lithium carbonate, which will be used together with commercial battery cathode precursor materials, to form a NMC622 cathode that will then be processed into NMC622 lithium-ion batteries for testing.
This will enable Lake and its potential customers to make direct comparisons of Lake’s lithium product’s performance in familiar battery chemistries.
Initial indications are anticipated to be reported in February.
Lake is ramping up investor engagement this week and next with Australian, North American and European based investors amid increasing focus on the lithium sector and the need for responsibly-sourced supply.
The company is able to deliver key characteristics demanded by cathode and battery makers, including high quality, scale, scalability and ESG benefits.