Lake Resources NL to leverage Lilac Solutions, Inc’s technology and funding partnership for the Kachi Lithium Brine project, shares
Lake and Lilac Solutions are now well positioned to leverage their efficient production of 99.97% pure lithium carbonate in a rapidly growing lithium market.
(,) and technology provider Lilac Solutions, Inc. have solidified their relationship by entering into a technology and financing partnership to develop the Kachi Lithium Brine project in Argentina.
Under a partnership, Lilac is now able to take a stake in the project in return for providing its cutting edge technology and expertise to move the project forward.
The partnership is poised to become a producer of the highest quality lithium in the market, with recovery rates of 80-90% and lithium carbonate purity of 99.97%.
This will be made possible by using Lilac’s efficient direct extraction method which sets a new industry standard for environmentally friendly production methods that do not require sacrificing quality.
The market reacts
The market reacted quickly and decisively as Lake returned to a normal market, raising the share price to AU $ 0.63, a change of 22.4%, within an hour of opening. , a clear demonstration of investor confidence in the technology partnership.
More than 18 million shares changed hands in the first hour, while Lake’s market cap before the opening was around A $ 574.7 million.
“Truly disruptive technology”
“We have progressed methodically through the testing and pilot phase work and are now happy to have established the partnership,” said Lake General Manager Steve Promnitz.
“Lilac’s technology is really disruptive because it took a non-mining technological solution that reduces operating costs and stimulates the recovery of lithium from our brines.
“The process is modular to produce high purity lithium and can be quickly accelerated from pilot stage to commercial stage. This equity investment guarantees rapid commercialization of the Lilac technology on the Kachi site.
Under the terms of the agreement, Lilac Solutions will first provide its modular process technology, engineering teams and an on-site demonstration plant in exchange for a 25% stake in Lake’s Kachi project.
After the completion of these performance-based milestones, Lilac is expected to provide funding of approximately US $ 50 million; equivalent to its share of future development costs.
Lilac CEO Dave Snydacker said the Kachi project is a lithium resource of global significance. “With Lilac technology, we can efficiently deliver the large volumes of high quality lithium chemicals needed by battery manufacturers.
“It is important to note that this will be done in an environmentally friendly manner. We have done a lot of work with this brine, generating the data needed for engineering studies, and it is a perfect fit for the Lilac technology.
“We are excited to partner with Lake, and the Lilac team is excited to demonstrate our technology onsite at Kachi and move the project forward,” said Snydacker.
Research from Macquarie University and JP Morgan indicates lithium market is now likely in perpetual deficit, with supply struggling to meet demand after 2030 unless more projects are defined by industry .
Export Credit Agency Expression of Interest
Lake Resources has secured an expression of interest from the UK Export Credit Agency representing 70% of the total funding required to expand annual production to 50,000 tonnes of high purity lithium carbonate equivalent.
Company President Stu Crow said, “With a successful capital raising; a partnership with a leader in lithium processing which will place us in the lower quartile of the cost curve; and securing an expression of interest in debt financing from the UK Export Credit Agency – the past few months have been busy for Lake.
“We have all worked hard to align Lilac’s advanced technology and our project funding to accelerate the development and production of the resource.
“We close the gap to be fully funded when you assume the DFS and other UKEF requirements are met. There aren’t a lot of short-term lithium projects that can be said to be funded for production. “
ESG policies promote local relationships
According to President Crow, all levels of the Argentine government are invested in the development of lithium production and the advancement of local communities, but rely on companies like LKE and Lilac to deliver technical innovations that both benefit the community. community and environment.
“The words ESG mean one thing to investors, but for our people on the ground and local communities in Catamarca province, Lilac treatment technology means much more efficient use of limited water resources, better recovery rates. and less impact on the earth’s surface. ,” he said.
“We will also add renewable energy to the project as part of the DFS. “
With 25 years of production at 25,500 tonnes per year of LCE using only 20% of the project’s lithium resources and funding to bring the annual production rate to 51,000 tonnes of LCE already secured, Lake Resources and Lilac Solutions are well positioned to take advantage of the booming lithium market.