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- Lake Resources (LKE) flags a potential offtake and investment deal with energy supply specialist WMC Energy
- Under the conditional deal, WMC will offtake up to 25,000 tonnes per annum of battery-grade lithium from Lake’s flagship Kachi project in Argentina
- Meanwhile, WMC also plans to purchase 10 per cent of Lake shares at $1.20 per share to support the development of the project
- The deal remains subject to a set of conditions, including the finalisation of a Kachi definitive feasibility study by Lake and the completion of due diligence by WMC
- Shares in Lake Resources are up 8.46 per cent to $1.09 at 10:57 am AEDT
Lithium company Lake Resources (LKE) has flagged a potential offtake and investment deal with energy supply specialist WMC Energy.
Lake today said it had signed a conditional framework agreement with WMC for the offtake of up to 25,000 tonnes per annum of battery-grade lithium from Lake’s flagship Kachi project in Argentina.
Under the potential arrangement, the lithium product will be priced at an “agreed market price formula” between the two companies based on the average quoted price in the quotation period.
The offtake deal has an initial term of 10 years and comes with an option to extend the arrangement for another five years.
Meanwhile, WMC also plans to purchase 10 per cent of Lake shares at $1.20 per share to support the development of the Kachi project.
Lake Executive Chair Stu Crow said today’s agreement delivered a “long-term strategic alignment” with WMC and its supply chain into Europe and North America.
“WMC Energy has a track record of being a market leader in nuclear fuels and expanded
into battery materials including lithium to serve predominantly the US and European lithium-ion battery supply chain for electric vehicles with their strategic needs,” Mr Crow said.
Meanwhile, Amrish Ritoe, the Director of Corporate Business Development for WMC’s battery materials team, said today’s deal would help Lake expand its downstream footprint across the European and North American lithium-ion battery supply chain.
“With our extensive network in Europe and North America, we are well-positioned to create a partnership with Lake and others that will help Lake to accelerate the development of the Kachi project,” Mr Ritoe said.
The Lake-WMC framework agreement, however, remains subject to Lake achieving a set of conditions laid out by WMC.
These include the finalisation of a definitive feasibility study (DFS) for Kachi, the performance of the Lilac demonstration plant, due diligence by WMC, and the lithium product from Kachi meeting applicable specifications.
Once these conditions are met, the arrangement will become unconditional.
Shares in Lake Resources were up 8.46 per cent to $1.09 at 10:57 am AEDT.
