Lake Resources Issued Seven Million Final Tranche of Placement Shares

  • Mar 16, 2020 AEDT
  • Team Kalkine
Lake Resources Issued Seven Million Final Tranche of Placement Shares

On 13 March 2020, Lithium explorer and developer Lake Resources NL (ASX: LKE) has issued final tranche of Private Placement (PP) Shares of around 7 million at an issue price of A$0.04 to the sophisticated and professional investors.

The shares now issued are a part of A$0.55 million planned extension of the Placement from A$3.4million to A$3.9 million before cost.

 

 

The final tranche of PP is expected to raise the total amount to A$3.68 million with the issue of ~91.4 million shares.

Do you know PP was earlier increased from A$1.9 million to A$3.4 million? To Read Please Click.

Therefore, due to the shortfall of ~A$0.31 million, LKE is expected to amend the available fund for working capital from A$0.91 million as given in the supplementary prospectus to A$0.61 million, given the Share Purchase Plan (SPP) is fully subscribed.

 

 

Share Purchase Plan (SPP)

Recently, the Company was pleased to announce that the upsized A$2.5million SPP from A$1.5 million before costs was oversubscribed by the overwhelming shareholder demand. Also, it is pertinent to mention that the SPP offer and any Shortfall offer closed on 13 March 2020 at 5 PM AEDT.

The SPP results are likely to be announced on 18 March 2020 post the closure of the market.

Interesting Read: Lake Resources Hit It Out of The Park: Buoyant Investors’ Confidence

Utilisation of Raised Funds

Most of the raised funds are intended to be used in the advancement of Kachi Lithium Project. The pilot plant is the direct extraction ion-exchange provided by the technology partner Lilac Solutions which is recently preeminently acclaimed by the Bill Gates -led fund Breakthrough Energy via backing worth US$20 million.

The direct extraction ion-exchange plant is more sustainable than the previous technology of evaporation ponds for where the technique of reinjecting the brines in aquifer post lithium recovery is missing, making Lilac’s technology cheaper, scalable and faster.

The positivity around the technology can easily be weighed by the fact that LKE share price surged by 56% post the announcement of Bill led fund backing the Lilac Solution.

Recently, 20,000 litres of brines delivered from Kachi Project for pilot testing at Lilac’s direct extraction ion-exchange pilot plant, Click to know more.

With upcoming amendments in the working capital, the fund usage is likely to stand at 24% for both closure of convertible notes and general exploration, 26% for pilot plant development, 10% for both production of samples for off-takers and the completion of the PFS and Working capital and lastly 6% for SPP, PP as well as ASX fees and miscellaneous costs.

 

 

Also, it is quintessential to mention that the Lake Resources has solid management with background in engineering, mineral exploration, mine management, finance and accounting as well as international experience of mining operations, project management and mining services to mention few. To know in depth, please read: Lake Resources Moving Ahead Backed by The Company Strong Management.

Share Price Information

LKE traded at A$0.031 on 13 March 2020 and has a market cap of A$19.39 million.  The stock is currently suspended from official quotation pending lodging period report.


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