Join our daily newsletter At The Bell to receive exclusive market insights
- Lake Resources (LKE) begins dry commission work at a demonstration plant within its Kachi project in Argentina despite an ongoing dispute with earn-in partner Lilac Solutions
- The company says the construction of a facility to house the Lilac demonstration plant is now complete, with commissioning works kicked off on Wednesday, September 14
- The news follows a reported dispute between Lake and Lilac, which is earning a 25 per cent interest in the Kachi project, over the timings of milestones under their earn-in arrangement
- It seems Lake is reassuring investors that in spite of the disagreement, it’s still business as usual as far as the development of the Kachi project is concerned
- Shares in Lake Resources are up 13.4 per cent to trade at $1.06 at 1:49 pm AEST
Lake Resources (LKE) has begun dry commission work at a demonstration plant within its Kachi project in Argentina despite an ongoing dispute with earn-in partner Lilac Solutions.
The company said the construction of a facility to house the Lilac demonstration plant was now complete, with commissioning works kicked off on Wednesday, September 14.
Once dry commissioning is complete, Lake and Lilac will begin wet commissioning at the plant. This is currently slated for September 22.
Lilac then plans to begin on-site processing of Kachi brines from the first week of October.
Today’s news follows a reported dispute between Lake and Lilac over timings related to their earn-in agreement. Lilac is busy earning a 25 per cent interest in the Kachi project.
Lake said Lilac needed to complete certain earn-in milestones for the project by the end of September, though Lilac allegedly believes it has until November 30 to complete its obligations.
Lake said last week it would look to resolve the dispute with Lilac either by mutual agreement or arbitration.
In any case, it seems Lake looked to reassure shareholders with today’s news that in spite of the disagreement, it was still business as usual as far as the development of the Kachi project was concerned.
Lake said it would continue to update the market on the progress of the Kachi development and its planned demonstration test work even as its dispute with Lilac continued.
Meanwhile, the company confirmed it was continuing offtake discussions for lithium products produced from Kachi, and it was in the final stages of consideration for new company board appointments.
Shares in Lake Resources were up 13.4 per cent to $1.06 at 1:49 pm AEST.
