Lake Resources in conflict with Lilac Solutions over a stake in a lithium project in Argentina

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Sep 14 (Reuters) – Australian lithium developer Lake Resources NL (LKE.AX) said a dispute arose with Lilac Solutions Inc over the deadline for the U.S. partner to reach certain milestones to secure a 25% stake in Argentina’s Kachi lithium project, sending its shares down 20% .

Lilac, backed by Bill Gates, believes it has until November 30 to complete the necessary milestones to earn up to a 25% stake in the Kachi project, while Lake believes the milestones must be reached by November. September 30, the Australian company said in a statement on Wednesday. .

Milestones include Lilac completing at least 1,000 hours of operation of the on-site Lilac pilot unit in Kachi and producing a supply totaling at least 2,500 kg of lithium carbonate equivalents from on-site operations, said Lake.

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Lake, which signed an agreement with private company Lilac last September to jointly develop the Kachi project, said it exercised its rights to have the dispute resolved either by agreement between Lake and Lilac or by arbitration. Read more

Lake said he has the ability to exercise certain buyout rights under the deal if Lilac does not reach the milestone by the required date.

Recently, short seller J Capital Research had claimed that Lake’s plan to produce lithium in Argentina was based on Lilac’s mining process which probably does not work, claims Lake has refuted.

Lilas did not immediately respond to a Reuters request for comment.

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Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.

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