Join our daily newsletter At The Bell to receive exclusive market insights
- Lake Resources (LKE) and Lilac Solutions have resolved their dispute over the Kachi project in Argentina
- In September, Lake reported a dispute had arisen between the pair over the timings of milestones that Lilac had to complete to earn a 25 per cent stake in the project
- The companies sought to settle the dispute either by mutual agreement or arbitration and today said they had decided to agree on an amended timeline for the milestones
- Lake says it is “fortunate” to be working with Lilac, which is “equally interested in doing things differently” to deliver high-quality lithium chemicals for battery makers
- LKE shares close 0.95 per cent lower at $1.04
Lake Resources (LKE) and Lilac Solutions have reportedly signed an amendment contract to resolve their dispute over the Kachi project in Argentina.
In mid-September, Lake flagged a disagreement between the companies regarding the timings of milestones under an arrangement whereby Lilac is earning a 25 per cent stake in the Argentinian project.
Lilac has been working towards the 25 per cent stake by achieving specific operational milestones, but the companies disagreed on when the milestones needed to be achieved.
This led to Lake seeking to resolve the dispute either by mutual agreement or arbitration, all while assuring the market it was business as usual regarding development activities at the Kachi project.
The two companies have now worked out their dispute and are proceeding with a “one team” approach to deliver the Kachi project outcomes.
Lake Resources and Lilac Solutions mutually agreed to an amended timeline which both are confident can be achieved. Like before, Lake will have certain buy-back rights if Lilac does not meet the agreed testing criteria in a timely manner.
“We are fortunate to be working with Lilac as our partner, who is equally interested in doing things differently so we can efficiently deliver the large volumes of high-quality lithium chemicals needed by battery makers,” Lake CEO and Managing Director David Dickson said.
The Kachi project demonstration plant has now produced more than 15 per cent of its total forecast output since coming online this quarter.
It’s continuing to produce in-spec lithium chloride solution between 1900 and 3800 milligrams per litre (mg/L), which compares favourably to previous testing on Kachi brines at Lilac’s California headquarters, which delivered 1400 to 2354 mg/L.
Lilac is now preparing samples for shipment to its facility in California for conversion into lithium carbonate.
“We expect to continue to improve upon the traditional project development timeline as we advance toward commercial production, ultimately bringing the Kachi project online years ahead of competing projects,” Lilac Solutions CEO David Snydacker stated.
LKE shares closed 0.95 per cent lower at $1.04.
