- Clean lithium developer Lake Resources (LKE) has received commitments to undertake a $20.6 million placement
- Approximately 125 million shares will be issued to institutional investors at 16.5 cents, representing a six per cent discount to the five-day volume-weighted average price
- Subject to shareholder approval, participants will receive one option for every two shares subscribed for, exercisable at 30 cents with a two-year expiry
- Lake will use the funds to complete a definitive feasibility study and an environmental and social impact study at the Kachi Project in Argentina
- Shares are up a healthy 16.7 per cent on the market and are trading at 24.5 cents
Clean lithium developer Lake Resources (LKE) has received commitments to undertake a $20.6 million placement.
Approximately 125 million new ordinary shares will be issued to institutional investors at 16.5 cents.
This price represents a six per cent discount to the five-day volume-weighted average price but a 12 per cent premium to the 10-day volume-weighted average price.
Further, subject to shareholder approval, participants will receive one attached option for every two shares subscribed for, exercisable at 30 cents with a two-year expiry.
Lake will use the funds to complete a definitive feasibility study (DFS) and an environmental and social impact study at the Kachi Project in Argentina and commission the demonstration plant at Kachi.
The company will also use the funds to undertake exploration and evaluation studies across all its projects.
“Securing these funds delivers certainty to deliver the flagship Kachi Project through the definitive feasibility study amid the rapid growth of the clean energy sector,” Managing Director Steve Promnitz said.
“This transaction places the company in its strongest financial position ever. Lake will hold in excess of $25 million following this placement and anticipates a further $6 million to be added by July as existing options convert,” he added.
The placement is expected to settle on January 27.
Shares are up a healthy 16.7 per cent on the market and are trading at 24.5 cents at 11:28 am AEDT.