Lake Resources (ASX:LKE) - Managing Director, Steve Promnitz
Managing Director, Steve Promnitz
Source: The Market Herald
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Lake Resources (LKE) partners with Lilac Solutions to develop the Kachi Lithium Brine Project in Argentina with an environmentally friendly focus
  • US-based Lilac will provide technology, engineering teams and an onsite demonstration plant to earn up to 25 per cent in Kachi
  • After earning its stake, Lilac is required to funnel around $69 million into its pro rata share of future development costs
  • Lake Resources shares last traded at 51.5 cents on September 21

Lake Resources (LKE) has partnered with Lilac Solutions to develop the Kachi Lithium Brine Project in Argentina.

Based in California, Lilac is a lithium extraction technology company with a mission to scale global lithium production to support the electric vehicle and energy storage transition.

The earn-in agreement will see Lilac contribute technology, engineering teams and an onsite demonstration plant to Kachi for the potential to earn an up to 25 per cent stake in the project, based on performance milestones.

After earning its interest, it will then be expected to put around US$50 million (A$69 million) towards its pro rata share of future development costs.

Notably, Lake said its partner’s low-cost production process offered higher lithium recovery rates than other technologies — 80 to 90 per cent — to produce battery-quality lithium carbonate of 99.97 per cent purity, while also protecting the local environment and water sources.

LKE’s managing director Steve Promnitz said the company had progressed methodically through testing and pilot-stage work and was pleased to establish the partnership.

“Lilac’s technology is truly disruptive as it has taken a non-mining tech solution, which cuts operating costs and boosts lithium recovery from our brines,” he said.

“The process is modular producing high-purity lithium and can be ramped up quickly through pilot to commercial stages — this equity stake ensures a rapid commercialisation of the Lilac technology at the Kachi site.”

Lilac’s CEO Dave Snydacker said its technology could efficiently deliver the large volumes of high-quality lithium chemicals needed by battery makers.

“Importantly, this will be done in a way that is environmentally friendly,” he said.

The deal follows an expression of interest received by LKE from the UK’s Export Credit Agency last month to finance around 70 per cent of the Kachi Project.

Lake Resources shares last traded at 51.5 cents on September 21, 2021.

LKE by the numbers
More From The Market Herald
The Market Herald Video

" Bannerman Resources (ASX:BMN) raises $12M for Etango-8

Bannerman Resources (ASX:BMN) has successfully tapped investors for an extra $12 million in funding for its…
Barton Gold (ASX:BGD) - Managing Director, Alexander Scanlon

" SA Govt. awards Barton Gold (ASX:BGD) $300k grant for exploration

Barton Gold (ASX:BGD) has been granted a $300,000 boost from the South Australian Government.
Barton Gold (ASX:BGD) - Managing Director, Alexander Scanlon

" Barton Gold ASX:BGD) to trial CSIRO exploration technology

Barton Gold Holdings’ (ASX:BGD) subsidiary signs agreements to trial new geochemical and machine learning techniques at…

" Barton Gold (ASX:BGD) kicks off new round of drilling at Tunkillia project

Barton Gold (ASX:BGD) has begun a drilling program at its Tunkillia gold project in South Australia.