The company and Acuity Capital have extended the expiration date of the A $ 10 million controlled placement agreement until January 31, 2023.
Lake Resources NL (ASX: LKE) (OTCMKTS: LLKKF) (FRA: LK1) has agreed to extend the existing Controlled Investment Agreement (CPA) with Acuity Capital for an additional amount of AU $ 5.5 million with a expiration date postponed to January 31, 2023.
The company, which pursues a strategy of sustainably producing clean, high-purity lithium products from its Argentine deposits using disruptive direct mining technology, says the expansion of the facility will allow greater flexibility.
New maximum of A $ 10 million
Originally, the CPA provided Lake with up to AU $ 4.5 million in reserve equity with an expiration date in the coming weeks.
Lake and Acuity Capital have now agreed to extend and increase the reserve capital available under the CPA facility to a new maximum of AU $ 10 million.
The company has already used the CPA to raise a total of A $ 1.4 million and following the increase in the limit to A $ 10 million, the reserve capital remaining available is $ 8.6 million.
In return, Lake agreed to increase the shares held as collateral by Acuity Capital under the CPA through an additional issue of 25 million shares on its LR7.1 capacity.
The company may, at any time, terminate the CPA, as well as repurchase and cancel these collateral shares for nil consideration, subject to the approval of the shareholders.