Lake Resources NL Increases Production Base Case for Kachi Lithium Brine Project on Favorable Market Forces

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“Given the growing demand and significant lithium supply shortfall, Lake is focused on delivering high-purity lithium carbonate at scale with significant ESG benefits,” said CEO Steve Promnitz.

Lake Resources NL (ASX:LKE, OTCQB:LLKKF) is increasing the base case of future production from its flagship Kachi Lithium Brine project to 50,000 tonnes per annum of lithium carbonate equivalent (LCE) for its definitive feasibility study ( DFS).

The planned production of “clean lithium” from the Argentinian project will increase from the old estimate of 25,500 tons per year to 50,000 tons per year of lithium carbonate.

The expanded base case is supported by an increased resource estimate predicted from drilling results.

Favorable winds for the ESG approach

Factors such as increased demand, promising funding, host country-friendly tax and investment policies, and the confidence of Lake’s technology partner, Lilac Solutions, all propelled the company’s decision.

The company is emboldened by the growing demand from potential supply partners for a secure supply chain of environmentally friendly high-purity lithium carbonate.

“Given the growing demand and significant lithium supply shortfall, Lake is focused on delivering high-purity lithium carbonate at scale with significant ESG benefits,” said CEO Steve Promnitz.

The company is also advised by technology partner Lilac Solutions that its modular direct lithium extraction technology is scalable and cost effective.

“Lake’s technology partner, Lilac Solutions, is focused on advancing the Kachi project to this larger scale,” Promnitz said.

Friendly markets

There is also a strong financial case to present, following indicative support to fund the project from export credit agencies and the international banking panel.

The export credit agencies of the UK and Canada have already indicated their willingness to project debt financing of around 70% of the capital requirements of the project.

“Lake has received indicative financial support for an increase in the size of the Kachi project from UK and Canadian export credit agencies and the many international banks supported by the ECA,” Promnitz continued. .

Host government policies

The Argentine government, which recently announced favorable investment policies in the form of an export tax reduction process under the Mineral Development Strategic Plan, has also given impetus to the project.

Lake Chairman Stu Crow said the independence of Lake Resources and the Kachi project added to the strategic appeal of the levy.

“We are well positioned, with quality resources, cutting-edge technology and key financial partnerships, to secure an optimal set of offtake agreements that align with these expansion plans and create maximum value for our key stakeholders.”

Lake’s market capitalization is around A$1.19 billion, while shares rose 5.8% to A$1.005, with over 18 million hands traded.

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