Lake Resources NL Signs Battery-Grade Lithium Levy and Strategic Investment for Kachi Project in Argentina


Lake Resources NL (ASX:LKE, OTCQB:LLKKF) signed a Conditional Framework Agreement (CFA) with WMC Energy BV for the offtake of up to 25,000 tonnes per year of battery-grade lithium from the Kachi project in Argentina and a 10% investment by WMC in Lake.

The key terms of the CFA are:

  • A 10% investment in Lake at $1.20 per share to support the completion of the Kachi project;
  • Withdrawal of 50% of lithium product from the Kachi project up to 25,000 tonnes per year of LCE;
  • An initial collection period of 10 years with an option to extend the period for an additional five years; and
  • The withdrawal should be priced according to an agreed market price formula based on the average price indicated in the estimate by applying a discount.

Going forward, the agreement strengthens Lake’s long-term shareholder base and adds to the equity component required for the drawdown of project development credit facilities.

“Eco-responsible fashion”

Lake’s new CEO and MD, David Dickson, said the CFA has cemented Lake’s ability to scale up LCE production in an environmentally responsible manner and offered partners like WMC the opportunity to participate in the other projects. of Lake.

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.

“Increasing customer and consumer scrutiny around the environmental and ethical credentials of lithium projects, particularly in European markets, drives our focus on sustainable extraction,” Dickson said.

Long-term strategic alignment

Lake Executive Chairman Stu Crow said, “CFA provides long-term strategic alignment with WMC and its supply chain to its European and North American customers.

“WMC Energy has a reputation for being a market leader in nuclear fuels and expanding 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.”

About WMC Energy

WMC Energy was incorporated in 2016 in Amsterdam, originally to provide supply chain solutions in the nuclear fuel industry.

In 2021, Sprott Asset Management (TSX:SII) has chosen WMC Energy to be the physical manager of the Sprott Physical Uranium Trust.

With the help of WMC Energy’s uranium trading team, the trust has grown from US$600 million when it launched the IPO in 2021 to nearly US$3 billion in total net worth today.

In 2020, WMC expanded into the battery materials sector by offering fixed-price forward sales solutions and through the development of project-financed physical assets in the field of lithium-ion battery materials under its brand. Liminal.

In addition to its own physical asset developments, WMC Energy actively seeks physical extraction agreements related to greensites and brownfields mining, linked from time to time with facilitating capital investments.

WMC Director Amrish Ritoe said, “WMC is delighted to support Lake Resources in its efforts to make the Kachi project a success.

“Engaging under the CFA will help Lake Resources expand its downstream footprint in the European and North American lithium-ion battery supply chain, allowing Lake to optimally benefit from the expected growth in demand. of battery materials such as lithium carbonate in these markets.

“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.”


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