Sydney, June 17, 2022 AEST (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX: LKE) (EN:LK1) (OTCMKTS: LLKKF) informs that it has appointed two leading project finance institutions, Citi and JP Morgan, as co-coordinators (JCs) for the Kachi Lithium project.
The appointment was undertaken after a panel of tenders issued by Lake’s advisor, GKB Ventures Ltd, to more than 10 international banks and an extensive screening and selection process which considered agency guarantees of export for the proposed debt financing. The results of the tender committee implied that the banks’ indicative appetite for the Kachi Lithium project was more than 5 times the amount required, reflecting the strong interest of international banks for this project and the indicative support of credit agencies. export (ACE).
Citi and JP Morgan were considered the strongest combination to coordinate the proposed financial package for this particular project. 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 GKB Ventures Ltd and SD Capital Advisory Limited.
The envisaged debt financing will be based on indicative support from UK Export Finance (UKEF, the United Kingdom’s export credit agency) to cover approximately 70% of the total financing requirement for the Kachi project, subject to the UKEF approval and standard project funding terms. (ASX version of August 11, 2021).
It is also expected that Export Development Canada (EDC, Canada’s Export Credit Agency) will participate alongside UKEF as the lead ECA, under a terms and conditions agreement. Commons (ASX version of September 28, 2021).
The investment bankers’ appointment advances the development of the Kachi project towards final credit approval and is part of the overall strategy put in place by GKB Ventures Ltd and SD Capital Advisory Limited.
The investment banks will coordinate workflows between lenders and third-party analysis on key project milestones, including but not limited to due diligence, next JORC-compliant Definitive Feasibility Study (DFS) and environmental and social impact assessment (ESIA).
The amount of debt financing offered will be governed by, among other things, the results of the DFS currently underway and the export credit agencies’ assessments of any studies that the business is on.
“We are delighted to partner with Citi and JP Morgan, who support Lake’s commitment to sustainable mining and reducing our environmental footprint,” said Steve Promnitz, CEO of Lake.
“Together, we are contributing to a clean energy future that aligns with the requirements of investors, debt providers and buyers that new lithium projects meet strict ESG standards,” Mr. Promnitz said.
About Lake Resources NL
Lake NL Resources (ASX: LKE) (OTCMKTS: LLKKF) is a clean lithium developer using clean, direct extraction technology for the development of sustainable high-purity lithium from its flagship Kachi project, as well as three other lithium brine projects in Argentina . The projects are located in a prime location within the Lithium Triangle, where 40% of the world’s lithium is produced at the lowest cost.
This method will enable Lake Resources to be an efficient, responsible, environmentally friendly and competitive supplier of high-purity lithium that is easily scalable and demanded by EV and Tier 1 battery manufacturers.
Lake NL Resources