The Capital Raising Program of Lithium explorer and developer Lake Resources NL (ASX: LKE) is proceeding smoothly, with a further boost provided by the Bill Gates-Led Fund backing Lake’s technology provider Lilac Solutions.
The optimism created in the investor’s confidence is witnessed by the rise in LKE share price by ~36% during the day’s trade, post the announcement of Lilac series A funding on 21 February 2020.
Lilac Solutions Capital Raising – Support by World Top Business Leaders
The direct extraction ion-exchange process technology provider to Lake Resources, Lilac Solutions has raised US$20 million in Series A funding. The investment support provided by the Bill Gates -led fund Breakthrough Energy Ventures signifies the sustainability of the process both in terms of low cost and low carbon emissions.
Breakthrough Energy Ventures is a US$1 billion fund to invest in startups in the direction of reducing emissions. It has many renowned dignities apart from Bill Gates backing the ventures, namely Amazon.com Inc. founder Jeff Bezos, Alibaba Group Holding Ltd co-founder Jack Ma and Bloomberg LP founder Michael Bloomberg. The world top business leaders made a significant move to supporting Lilac Solutions with the potential to reduce greenhouse gas (GHG) emissions substantially. Also, it is worth mentioning that the round included participation from MIT's The Engine fund, Lowercarbon Capital, and The Grantham Foundation.
Significance of Lilac’s Direct Extraction Ion-Exchange Process
Lilac’s direct extraction process offers a sustainable solution for Lake Resources. The technology is ecologically welcoming as it allows the brine to be reinjected into the aquifer post the removal of lithium on contrary to the traditional method, which requires evaporation ponds. The ability to transfer the brine back to the underground without changing the brine chemistry makes the process significantly faster, cheaper, and more scalable than existing technology.
The Lilac process is likely to help the global clean energy revolution companies with its ethical and sustainable solution. Also, it provides electric vehicle (OEM’s) and battery makers to have access to the sustainable and scalable supply of raw materials at a lower cost to the environment.
The funding of Lilac is intended to facilitate the extension of its engineering team, expansion of production capacity and deployment of ion-exchange technology of Lilac Solution.
Lake Resources – Promising Strategies
Funding by known successful investors towards the technology which has been used by the Lake Resources in commercialising the Kachi Lithium Project instils an enormous amount of confidence in LKE’s strategy. Already the positive result from lab depicting higher recoveries of ~80 to 90% in a few hours compared to conventional South America's brine operations of ~50% recovery in 9 to 18 months, puts strong positivity around the project.
In the milieu of which it is pertinent to mention that the LKE's Kachi project is expected to provide low impurity and high-quality battery-grade product with the capability of getting an additional premium for its product.
Interested in Kachi Project? Please Read: Kachi Project - Assessing Requisites for Lake Resources’ Future Production
Some of the encouraging comments by the Stakeholder are: -
Presently, the Company is focusing on raising the total fund of A$3.5 million through Private Placement (A$2 million) and Share Purchase Plan (A$1.5 million). The raised fund is intended to be used for advancing Kachi Project and early-close out of the convertible securities facility, increasing the shareholder value.
Click on the link to Know More About Funding: Lake Resources’ Capital Raising Program Update; Sailing Smoothly Toward Raising Funds
Also, the ion-exchange pilot plant is to be tested with replicate 5,000 litres of brine samples to test the technology stability and functionality before the arrival of ~20,000 litres of Kachi brine samples and smoothen the commercialisation process. The samples are being transported from Kachi and expected to arrive late next week to the docks in Oakland, California.
The produced samples of battery-grade lithium carbonate from high-purity lithium chloride is anticipated to be sent to the downstream groups to start the qualification process with prospective off-takers, helping further in financing support.
The Company believes to be reporting its first large samples of lithium carbonate by late March 2020.
Also, it is essential to note that the detailed PFS is anticipated to be announced soon, predicting the cost of production at the lower side of the cost curve.
Stock Price Information
The stock touched the day’s high of A$0.061 and ended the day’s session at A$0.49, up ~36% on 21 February 2020, with a market cap of A$20.79 million.