- Lake Resources (LKE) clashes with its partner, Lilac Solutions, over certain stages of the Kachi project in Argentina
- The companies signed an agreement last year that would see Lilac earn up to 25% of the Kachi project by completing work on the project.
- However, the pair are now at odds over when Lilac’s milestones should be met, with Lake saying the deadline is September 30 and Lilac saying she has until November 30.
- In response, Lake Resources exercised its right to settle the dispute either by mutual agreement or by arbitration.
- Lake Resources shares are down 13.39% at $1.10 as of 11:34 a.m. AEST
Lake Resources (LKE) has reported a dispute with its partner, Lilac Solutions, over the Kachi lithium project in Argentina.
Lilac is in the process of acquiring a 25% stake in the Kachi project, based on the achievement of specific operational milestones. The companies signed a pilot project agreement in September 2021 for Lilac to provide technology, engineering teams and an on-site demonstration plant to the Kachi project in return for participation.
Lake said that as work continued at Kachi, the partner companies would have disagreed on when these milestones should be achieved. Lake considers the milestones to be met by September 30, and Lilac believes she has until November 30 to meet her obligations.
Lake said he would now work to resolve the dispute either by mutual agreement or arbitration.
Lilac was selected as a complementary partner because of its low-cost production process that offered higher lithium recovery rates than other technologies to produce battery-grade lithium carbonate with 99.97% purity. At the same time, its process is respectful of the environment and water sources.
Specific milestones that Lilac was required to meet as part of the acquisition agreement included the completion of 1,000 hours of operation of the Lilac pilot unit and the production of a lithium carbonate feed totaling at least 2,500 kilograms of equivalents of lithium carbonate from on-site operations.
If the milestones are not met by the required date, Lake would have certain repurchase rights under the agreement, which it can exercise at its option.
Shares of Lake Resources were down 13.39% at $1.10 at 11:34 a.m. AEST.