Canadians call to play lithium Lake Resources

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Lake Resources, the ASX-listed lithium mine, has fallen on the radar of a Canadian export credit agency.

It is understood that Export Development Canada, a state credit agency established to support Canadian businesses, is considering a loan of US $ 100 million for Lake Resources’ Kachi Lithium project.

Street talk. Louis Douvis

EDC signed a formal letter of interest, sources said, which could allow it to lend directly into the project and charge the OECD benchmark fixed commercial interest rate (which is significantly lower than commercial project financing traditional available for lithium developers).

It is the second export credit agency to set up in Kachi in the past six weeks. UK Export Finance, which has expressed interest in meeting around 70 percent of Kachi’s project finance needs, is also present. (Kachi is expected to cost $ 544 million to go into production).

Export credit agencies, if committed to the project, could help reduce the risk of Lake Resources’ flagship product without diluting equity, and allow the company to begin negotiations for deals. debit and others without having to sell part of the project to development of funds.

This is the second news from Lake Resources last week. US-based lithium miner Lilac Solutions surged last week, pledging to develop the technology, engineering and an on-site demonstration plant, in return for a stake in the company.

Shares of Lake Resources closed at 60 ¢ on Monday, to assess the company’s equity at $ 669 million.

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