$4.5 million raised in oversubscribed placement
Brisbane, Mar 22, 2018 AEST (ABN Newswire) - Lithium exploration company Lake Resources N.L. (
ASX:LKE) ("Lake" or "LKE") announces that it has secured commitments to raise $4.5 million (before costs) in an oversubscribed private placement by way of the issue of 33,333,335 new ordinary LKE shares (Offer Shares) at $0.135 per share (Placement) with an attached 1-for-2 option exercisable at $0.20 on or before 15 December 2018 (Attaching Option), to sophisticated and professional investors. The Placement is expected to complete on Monday 26 March 2018.
- Lake completed oversubscribed private placement of $4.5 million
- Offer was upscaled from $4 million due to significant demand from current shareholders
- Patersons Securities Limited and Hunter Capital Advisors Pty Ltd were joint lead managers
The intention was to raise $4 million but due to significant demand from current shareholders, the offer was upsized. The Company has agreed to seek quotation of the Attaching Options subject to meeting the listing requirements under the ASX Listing Rules.
The funds raised through the Placement will be used by Lake for further exploration at its Olaroz, Cauchari and Paso Lithium Brine Projects, and for ongoing drilling and initial scoping studies at the Kachi Lithium Brine Project. In addition, a portion of the funds will repay the outstanding notes and for working capital.
Lake Resources' Managing Director Steve Promnitz, said: "Lake is grateful for the overwhelming interest to support exploration over the Olaroz and Cauchari areas as they are immediately adjacent to high grade lithium production or drill holes with high grades and flow rates."
Lake's 100% owned flagship brine projects (covering over 170,000ha), Olaroz/Cauchari/Paso and Kachi, have similar settings to major world-class brine projects being developed in the highly prospective Lithium Triangle in Argentina. The Company's Olaroz/Cauchari Projects are located next to Orocobre's Olaroz lithium production project and SQM/Lithium Americas Cauchari development project. Lake recently signed a landmark agreement with the Jujuy Provincial Government, confirming tenure of its Olaroz/Cauchari/Paso Projects and allowing Lake to advance exploration efforts for the first time since their acquisition 2 years ago.
The Company is currently drilling at its Kachi Lithium Brine Project (100% ownership - mining lease). The Kachi project covers 50,000 Ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla Project. Results are expected from April/May onwards.
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About Lake Resources NL
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is a clean lithium developer utilising state-of-the-art ion exchange extraction technology for production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina among three other projects covering 220,000 ha.
This ion exchange extraction technology delivers a solution for two rising demands - high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials with low carbon footprint and significant ESG benefits.
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