Sydney, Oct 6, 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 (CFA) with WMC ENERGY BV (WMC) for the offtake of up to 25,000 mtpa of battery grade lithium from the Kachi Project and a 10% investment by WMC at Lake.
The main terms of the CFA are as follows:
– A 10% investment in Lake at AUD 1.20 per share to support the realization of the Kachi project;
– Withdrawal of 50% of the lithium product from the Kachi project up to 25,000 mtpy of LCE;
– An initial collection period of ten years with an option to extend the period for an additional five years;
– Levy to be fixed on an agreed market price formula based on the average price indicated in the estimate by applying a discount.
The CFA is subject to a standard set of conditions fulfilled by Lake Resources, including: completion of the Definitive Feasibility Study (DFS); the performance of the Lilac demonstration plant; due diligence by WMC; and the LCE meeting the applicable product specifications.
The CFA becomes unconditional upon the satisfaction of said conditions precedent.
Stu Crow, Executive Chairman of Lake, said, “CFA provides long-term strategic alignment with WMC and its supply chain to its European and North American customers.
“WMC Energy has a proven track record as a market leader in nuclear fuels and has expanded into battery materials, including lithium, to primarily serve the U.S. and European supply chain of lithium-ion batteries for vehicles. electricity with their strategic needs,” continues Mr. Crow.
The agreement strengthens Lake’s long-term shareholder base and adds to the equity component required for the draw down of credit facilities for the development of the project.
Lake’s new CEO and MD, David Dickson, says the CFA cements Lake’s ability to scale up LCE production in an environmentally responsible manner and provides opportunities for partners like WMC to participate in Lake’s other projects. As Lake moves to develop these adjacent projects, an increasing supply of high-quality lithium products is becoming available to WMC and its partners and customers across the United States and Europe.
“Close customer and consumer scrutiny of the environmental and ethical credentials of lithium projects, particularly in European markets, drives our focus on sustainable extraction,” said Dickson.
“WMC is delighted to support Lake Resources in its efforts to make the Kachi project a success. The CFA engagement will help Lake Resources expand its downstream footprint across the European and North American battery supply chain. lithium-ion battery, allowing Lake to optimally benefit from the expected growth in demand for battery materials such as lithium carbonate in these markets,” said Amrish Ritoe, business development manager for the battery materials team at WMC.
Mr. Ritoe continues, “With our extensive network in Europe and North America, we are well positioned to partner with Lake and others that will help Lake accelerate the development of the Kachi project.
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