Lake Resources N.L. (ASX: LKE) is into lithium exploration and development having exploration projects in Argentina.
The company, today on 9th April 2019, has updated that it has secured commitments to raise approximately A$1 million before costs in a private placement to sophisticated and professional investors.
Under the placement, the company will issue of approximately 20,000,000 new fully paid ordinary LKE shares (Offer Shares) at $0.05 per share (Placement) to sophisticated and professional investors using its existing placement capacity under ASX Listing Rules 7.1 and 7.1A.
The company will use the funds raised through the Placement for further drilling at the company’s Cauchari Lithium Brine Project. A part of these funds will also be used as part of the PFS at the Kachi project and to fulfil the additional working capital needs.
The company’s Managing Director, Steve Promnitz said that the company is thankful to new and current investors. Ganfeng Lithium, the #2 lithium producer, has just spent US$160 million to increase its holding to 50% of Cauchari with Lithium Americas and then signed a 10-year lithium supply deal with Volkswagen for EV batteries. The company is drilling in the same basin 400m from the production area of Ganfeng at Cauchari. The management is keen to get the new rig going. Further, post this announcement, the suspension of trading in the securities of Lake Resources has been lifted.
In another development, the company has provided an update on the commencement of a pre-feasibility study at its Kachi Lithium Brine Project. The company had recently announced the first-ever resource for Kachi of 4.4 million tonnes lithium carbonate equivalent inside of an exploration target of 8 to 17 million tonnes LCE grading in the range of 310 milligrams/liter to 210 milligram/liter lithium. There is a high possibility that the discussions will soon be completed with various technical providers of internationally acceptable PFS studies so that the company can demonstrate how Kachi can be taken into production using new direct extraction methods at a competitive cost. Notably, Kachi is one of the largest wholly-owned lithium brine basins in the ‘Lithium Triangle’, responsible for half the world’s lithium output and at the lowest cost.
In a report published on 8th April 2019, the group has reported its intention to undertake bonus issue of options to all the eligible shareholders. The bonus options will be expiring on 15 June 2019 with an exercise price of $0.04 each.
On the stock-performance front, the stock has posted the YTD return of -35.87%. The company also has posted a return of -33.71% over the past six months. While writing, i.e. on the 9th April 2019 AEST 03:10 PM, the stock of the company is trading at a price of A$0.059, performing flat during the day’s trade with a market capitalisation of ~A$ 20.66 million. The stock opened the trading day at A$0.063, reached its intraday high of A$0.066, and touched the intraday low of A$0.059, with a daily volume of ~ 697,510. It had a 52-week high price of $0.145 and a 52 weeks low price of $0.048, with an average volume of 328,338 approximately.