- Lake Resources (LKE) refutes information released in a report published by short-seller, J Capital
- The report criticises Lake Resources for using Lilac Solutions’ unproven direct lithium extraction (DLE) technology for its Kachi lithium project in Argentina
- Whilst the company claims it will produce cleaner lithium, J Capital’s report suggests the “DLE will still use large amounts of water and produce toxic waste”
- However, Lake Resources says this does not apply to Lilac as it was carefully selected from 50 direct extraction processes
- Shares are trading 6.67 per cent lower at 63 cents each at 1:25 pm AEST
Lake Resources (LKE) has refuted information released in a report published by short-seller, J Capital.
The report criticised Lake Resources for using unproven direct lithium extraction (DLE) technology to remove lithium from brine.
The company planned to use Lilac Solutions’ DLE technology for its Kachi lithium project in Argentina to produce a lithium carbonate product.
Whilst the company has claimed it will produce cleaner lithium, J Capital’s report suggests the “DLE will still use large amounts of water and produce toxic waste.”
Lake Resources refuted these accusations, stating that it does not relate to Lilac’s ion exchange technology.
It said there were over 50 direct extraction processes in use across industries and it conducted a thorough examination to select Lilac.
The company claimed its Kachi site can be operated with low quantities of water and it is ideally located to take advantage of solar energy.
In other news, Lake Resources addressed its non-compliance with share trading, after Stephen Promnitz sold shares without approval from the Chairman.
It has planned to review the administrative error and ensure all directors and senior management are aware of the trading rules.
Shares were trading 6.67 per cent lower at 63 cents each at 1:25 pm AEST.