- Canada’s Export Credit Agency, EDC, has provided a letter of interest of financial support for Lake Resources’ (LKE) Kachi Lithium Project in Argentina
- The LOI will allow EDC to potentially work alongside UK Export Finance to support approximately 70 per cent of the total finance required for Kachi
- EDC indicated it will be able to provide direct lending of US$100 million (around A$137 million) to the project
- Just before the market opens for the day, Lake Resources is sitting at 60 cents per share
Lake Resources (LKE) has received further financial support for its flagship Kachi Lithium Project in Argentina.
The clean lithium developer received a formal letter of interest (LOI) from Canada’s official Export Credit Agency, Export Development Canada (EDC).
The LOI will allow EDC to potentially work alongside UK Export Finance (UKEF) to support approximately 70 per cent of the total finance required for Kachi.
EDC indicated it will be able to provide direct lending of US$100 million (around A$137 million) to the project, subject to sourcing requirements.
Lake Resources believes that the ECA backing provides significantly lower cost of capital than traditional debt financing and demonstrates additional confidence in clean lithium technology.
Commenting on this announcement is Managing Director Steve Promnitz.
“Having Canada’s direct sovereign lending alongside the UK’s sovereign support considerably de-risks the project for the investors and the international banks who continue to express strong interest to be part of Kachi’s development,” he said.
“Admittedly Lake has significant work to convert these EOI’s into committed funding arrangements. However, these EOI’s are a road map and if Lake does what it says it’s going to do in the DFS and ESIA, the project will be funded.”
The definitive feasibility study and an environmental and social impact assessment covering the Kachi Project are well advanced and is expected to be completed in the second quarter of 2022.
Just before the market opens for the day, Lake Resources is sitting at 60 cents per share.