Sydney, Oct 12, 2022 AEST (ABN Newswire) – Clean lithium developer Lake Resources NL (ASX: LKE) (LK1:ENG) (LLKKF:OTCMKTS) announces that it has entered into a conditional framework agreement with SK On Co., Ltd. (SK On) for the extraction of up to 25,000 tonnes per annum (tpa) of lithium from the Kachi project, which includes a 10% investment by SK On in Lake through the issuance of new ordinary shares.
The important terms of the CFA are:
– A strategic investment of a 10% stake in Lake (VWAP 20 trading days before 10/12/22)
– Withdrawal of 50% of lithium product from the Kachi project up to 25,000 dmt (LCE)
– Initial term of five years plus option for five additional years
– Offtake priced according to an agreed market price formula based on the average price quoted during the quotation period.
The CFA is subject to a standard set of conditions fulfilled by Lake Resources, including: DFS; Results from the Lilac Demonstration Plant; financial due diligence; and product specifications.
The CFA becomes unconditional upon satisfaction of the conditions precedent.
“CFA enters into a long-term strategic agreement with SK On, one of the world’s leading producers of lithium-ion batteries with a major growing presence in the North American market,” said Stu Crow, executive chairman of Lake.
He said the agreement strengthens Lake’s long-term shareholder base and adds to the equity component required for drawing down credit facilities for the development of the project.
Lake’s new CEO and MD, David Dickson, said the CFA cements Lake’s ability to scale up environmentally responsible production and also provides SK On with the opportunity to participate in Lake’s other projects as they move forward. towards development to ensure a supply of high quality lithium products. available for SK On.
“SK On is very pleased to execute this CFA with Lake, a clean lithium developer, which can enable SK On to secure a stable lithium supplier for its US supply chain,” said Jinsuk Ryu, Vice President by SK On.
“Lake fits particularly well with SK On’s ESG policy, as it uses environmentally friendly direct lithium extraction technology for lithium production. With this CFA, both parties will strengthen their mutual partnership to make advancing opportunities to secure sustainable sources of raw materials in the future,” she says.
SK On is one of the fastest growing battery manufacturers in the industry, with battery production facilities operating in countries including the United States, China, Hungary and Korea. SK On, a subsidiary of Korea’s second-largest conglomerate SK Group, supplies batteries to major automakers including Ford Motor Company, Hyundai Motor Company and Volkswagen.
SK On has consented to this marketing. Lake will update the market on the progress of CFA implementation with SK On as soon as it is able to do so.
Lake is advised in this transaction by New Electric Partners (www.newep.com).
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