Lake Resources NL (ASX:LKE, OTCQB:LLKKF) has appointed two leading project finance institutions, Citi and JP Morgan, as co-coordinators for the proposed debt financing of its flagship Kachi Lithium project in Argentina.
The two investment banks will work together on the debt financing of Lake’s 50,000 tonnes per annum (tpa) lithium carbonate equivalent (LCE) Kachi Lithium project, with continued support from its advisors GKB Ventures Ltd and SD Capital Advisory Limited.
The proposed debt financing is aimed at securing guarantees from the UK Export Finance (UKEF) Export Credit Agency to cover approximately 70% of the Kachi Project’s total financing requirement, subject to standard project financing conditions .
The appointment of the investment bankers advances the development of the Kachi project towards final credit approval and is part of the overall strategy put in place by the company’s advisers.
“The Future of Clean Energy”
Lake Resources Managing Director Steve Promnitz said, “We are delighted to partner with Citi and JP Morgan, who support Lake’s commitment to sustainable mining and reducing our environmental footprint.
“Together, we are contributing to a clean energy future that aligns with investor, lender and buyer requirements that new lithium projects meet strict ESG standards.”
Citi and JP Morgan were considered the strongest combination to coordinate the proposed financial package for this particular project.
The appointment was undertaken after a panel of tenders launched by Lake’s adviser, GKB Ventures Ltd, to more than 10 international banks and an extensive screening and selection process which included agency guarantees of export for the proposed debt financing.
The results of the tender panel implied that the banks’ indicative appetite for the Kachi Lithium project was more than five times the amount requested, reflecting the strong interest of international banks for this project and the indicative support of the credit agencies. export credit (ECA).
The investment banks will coordinate workflows between lenders and third-party analysis on key project milestones, including but not limited to due diligence, the next JORC-compliant Definitive Feasibility Study (DFS) and an environmental and social impact assessment (ESIA).
The amount of debt financing offered will be governed by, among other things, the results of the ongoing DFS and export credit agency assessments of any studies the company has in place.
Export Development Canada (EDC, Canada’s Export Credit Agency) is also expected to participate alongside UKEF as the lead ECA, under a common terms agreement. .