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Lake Resources (ASX:LKE) appoints two finance institutes for Kachi

ASX News, Materials
ASX:LKE      MCAP $102.8M
17 June 2022 13:18 (AEST)

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Lake Resources (LKE) has appointed two leading project finance institutes, Citi and J.P. Morgan, as joint coordinators for the Kachi lithium project in Argentina.

The appointment followed an extensive review and selection process of over 10 international banks.

Lake said Citi and J.P. Morgan were deemed the strongest combination to coordinate the proposed financing package for this particular project.

The two banks will work together on the debt financing packaging for Kachi. They will co-ordinate workstreams between the lenders and third-party analysis on major project milestones, including due diligence, feasibility study and the environmental and social impact assessment.

Additionally, the banks will also have ongoing support from Lake’s advisors GKB Ventures and SD Capital Advisory.

According to the company, this appointment advances the development of the Kachi project towards final credit approval.

The debt financing will be based on the indicative support by UK Export Finance (UKEF) to cover around 70 per cent of Kachi’s total funding requirements, subject to UKEF approval and to project finance conditions.

“We are pleased to partner with Citi and J.P. Morgan, who support Lake’s commitment to sustainable extraction, and minimising our environmental footprint,” Lake Managing Director Steve Promnitz said.

“Together, we are contributing to a clean energy future that aligns with investors, debt providers, and off-takers requirements that new lithium projects adhere to strict ESG standards.”

On the market, Lake shares were down 5.71 per cent and trading at $1.55 per share at 1:17 pm AEST.

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