Lake Resources NL $ 20 million oversubscribed placement backed by global institutional investors

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The company’s flagship project, Kachi Lithium Brine Project, is now fully funded until the construction phase in 2022.

Lake Resources NL (ASX: LKE) (OTCMKTS: LLKKF) (FRA: LK1) has received pledges to raise A $ 20.6 million through an equity placement at 16.5 cents each from institutional investors.

Each of the two new offered shares will have an option attached (approximately 62.5 million options) with an exercise price of 30 cents each with a two-year term, subject to shareholder approval.

This transaction follows Lake’s announcement that it had obtained approval for real-time electronic clearing and settlement in the United States for its OTCQB-listed shares.

“Strongest Financial Position Ever”

Lake Resources Managing Director Steve Promnitz said: “Obtaining these funds secures the completion of the flagship Kachi project through the definitive feasibility study against a backdrop of rapidly growing clean energy sector.

“This transaction places the company in its strongest financial position in its history.

“Lake will hold more than A $ 25 million as a result of this placement and expects an additional $ 6 million to be added by July as existing options are converted.”

Financing the development of Kachi

Lake’s flagship Kachi Lithium Brine Project is now fully funded until the construction phase in 2022, enabling the company to accelerate the development of sustainable, high-purity lithium.

The net proceeds of the placement will be used to:

  • Operate the direct lithium chloride extraction pilot plant in California;
  • Commission the demonstration plant at the Kachi site to produce larger samples for buyers;
  • Complete the Final Feasibility Study (DFS) in Kachi;
  • Complete the environmental and social impact study (ESIA) of the Kachi project; and
  • Exploration and appraisal studies on all projects and working capital.

“Exposure to financial markets”

Roth Capital Partners has been appointed financial advisor to help the company expand its investor base in global markets.

Lake Resources President Stu Crow said, “This is a transformative time for Lake and its shareholders.

“We are delighted to have this support from institutional investors in North America, Europe and Australia at this pivotal moment in the company’s development.

“Roth Capital introduced Lake to a number of new investors who are following the rapidly growing cleantech battery materials industry and will expand our exposure to international financial markets. “

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