Lilac eyes equity stake in lithium miner if extraction technique delivers
Lake Resources (ASX: LKE; OTC: LLKKF) is partnering with Lilac Solution to develop Lake’s Kachi Lithium Brine Project in Argentina.
Under the agreement, Lilac Solutions will contribute technology, engineering teams, and an on-site demonstration plant, earning in to a maximum 25 percent stake in Lake’s Kachi project based on performance-based milestones.
Lilac is expected to fund approximately US$50 million of development costs leading to production.
Lake Resources said the extraction method should place the company in the bottom quartile on the cost curve of production. The companies also claim that the extraction methods are environmentally-friendly.
Kachi is Lake's flagship project. It is located in Argentina’s Catamarca Province at the southern end of the Lithium Triangle. In November 2018, Lake announced a maiden JORC resource at Kachi of 4.4 million tonnes (Mt) of contained lithium carbonate equivalent (LCE), and an exploration target ranging between 8-17Mt of LCE. Lake said that this ranks Kachi as one of the world’s top 10 brine resources.
Lake Resources was up 19% to 61 cents a share at 1:34 p.m. GMT.