LAKE RESOURCES RAISES $1.66 MILLION IN UNSECURED NOTE OFFER
Lake pleased with oversubscribed support for unsecured debt security of $1.66 million
Debt security avoids dilution of shareholders and allows drilling to advance
Lithium exploration company Lake Resources N.L. (ASX:LKE, “Lake” or “LKE”) announces that it has secured commitments to raise $1.665 million in an oversubscribed offer by way of the issue of 1,665,000 unsecured notes (Notes) to sophisticated and professional investors.
The intention was to raise $1.5 million but due to demand, the offer was upsized. The funds received from the issue of the Notes will be used by Lake for exploration expenditure, including the costs of advancing drilling, and working capital. A diamond drill rig will commence a maiden drilling programme in the coming days, with formal approval, over the Kachi Lithium Brine Project in Catamarca.
Lake Resources’ Managing Director Steve Promnitz, said: “Lake is grateful for the financial support to advance drilling over the Kachi Project to unlock further value. This allows time for the company to provide further results showing the scale and potential of the project.” As the Notes will only be issued to eligible sophisticated and professional investors, the Company does not currently intend to issue a prospectus or other disclosure document in relation to the Notes.
However, under the terms of the Notes the Company may elect to do so in the future to facilitate further transferability of the Notes. A further announcement will be made in due course once the Notes are issued. As the Notes are debt securities and are otherwise not convertible into ordinary shares, the Company does not intend to seek shareholder approval for their issue.
Background on Lake Resources NL (ASX:LKE) Lake Resources NL (ASX:LKE, Lake) is undertaking an aggressive exploration programme to explore and develop prime lithium projects in Argentina, owned 100%, among some of the largest players in the lithium sector. Lake holds one of the largest lithium tenement packages in Argentina (~170,000Ha) of any listed entity, secured prior to a significant ‘rush’ by major companies with three key lithium brine projects located in the Lithium Triangle which produces half of the world’s lithium. Lake also holds one large package of lithium pegmatite properties which were an unappreciated source of lithium in Argentina until recently.
Lithium Brine Projects are: Olaroz/Cauchari Project (~19,000 Ha) Jujuy Province Paso Project (~29,000 Ha) Jujuy Province Kachi Project (~52,000 Ha) Catamarca Province
The three key brine projects, Olaroz/Cauchari, Paso and Kachi, have similar settings to major world class brine projects being developed in the highly prospective Jujuy and Catamarca Provinces. One project is located next to Orocobre’s Olaroz lithium production and SQM/Lithium Americas Cauchari project. The Kachi project covers 50,000 Ha over the centre of a salt lake in the deepest part of the basin, south of FMC’s lithium operation and near Albemarle’s Antofalla project.
Drilling has started at Kachi and results are anticipated over the coming months. Surface sampling has revealed positive lithium results which will be expanded through the drilling program and geophysics.
Exploration and permitting over Kachi and the other projects will provide further catalysts for the company’s growth as these areas are assessed for major discoveries
Significant corporate transactions continue in adjacent leases with development of SQM/Lithium Americas Olaroz/Cauchari project with an equity/debt investment over $300 million and Advantage Lithium’s equity transaction in some of Orocobre’s leases. LSC Lithium has also raised over $60 million on a large lease package in similar areas as Lake’s properties.
The Directors have strong backgrounds in mineral exploration, mining engineering, mine management,
finance and accounting, with considerable international experience.
Stephen Promnitz Managing Director
Stephen has considerable technical and commercial experience in Argentina, a geologist fluent in Spanish, and a history of exploring, funding and developing projects. Mr Promnitz has previously been CEO and 2IC of mid-tier listed mineral explorers and producers (Kingsgate Consolidated, Indochine Mining), in corporate finance roles with investment banks (Citi, Westpac) and held technical, corporate and management roles with major mining companies (Rio Tinto/CRA, Western Mining). [email protected]
Stuart Crow Chairman and Non-Executive Director
Stuart has global experience in financial services, corporate finance, investor relations, international markets, salary packaging and stock broking. Stuart is passionate about assisting emerging listed companies to attract investors and capital and has owned and operated his own businesses. [email protected]
Dr Nick Lindsay has over 25 years’ experience in Argentina, Chile and Peru in technical and commercial roles in the resources sector with major and mid-tier companies, as well as start-ups. Nick has an BSc (Hons) degree in Geology, a PhD in Metallurgy and Materials Engineering as well as an MBA. A fluent Spanish speaker, he has successfully taken companies in South America, such as Laguna Resources which he led as Managing Director, from inception to listing, development and subsequent acquisition. Mr Lindsay is currently CEO of Manuka Resources Ltd, an unlisted company, having previously held the position of President – Chilean Operations for Kingsgate Consolidated Ltd and is a member of the AusIMM and the AIG.
Mr Andrew Bursill Company Secretary
Mr Bursill is a qualified Chartered Accountant and has held the position of outsourced CFO and Company Secretary with numerous ASX listed, unlisted public and private companies, in a range of industries covering mineral exploration, oil and gas exploration, biotechnology, technology, medical devices and retail.
This is a paid advertisement. HotCopper does not endorse, approve or take responsibility for the statements made.