Lake Resources raises $4.5 million in oversubscribed placement
Lithium exploration company, Lake Resources N.L. (ASX:LKE) today announced it has secured commitments to raise A$4.5 million in an oversubscribed private placement to sophisticated and professional investors.
The original offer was increased from $4 million due to significant demand from current shareholders, with the upsized $4.5 million raise to be completed by Monday 26 March 2018.
The funds will be raised by way of the issue of 33,333,335 new ordinary LKE shares at $0.135 per share with an attached 1-for-2 option exercisable at $0.20 on or before 15 December 2018.
LKE will be seeking quotation of the attaching options subject to meeting the listing requirements under the ASX Listing Rules. Patersons Securities Limited and Hunter Capital Advisors Pty Ltd were joint lead managers of the capital raise.
The funds will be used by the small-cap to undertake further exploration at its Olaroz, Cauchari and Paso Lithium Brine Projects, as well as providing cash flow for ongoing drilling and initial scoping studies at the Kachi Lithium Brine Project. A percentage of the funds will be put towards repaying outstanding notes and general working capital.
LKE Managing Director Steve Promnitz commented on today’s announcement: “Lake is grateful for the overwhelming interest to support exploration over the Olaroz and Cauchari areas as they are immediately adjacent to high grade lithium production or drill holes with high grades and flow rates.”
It should be noted though, that this is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.
The company’s flagship brine projects cover more than 170,000 hectares and have similar settings to some other major world-class brine projects currently being developed in Argentina’s Lithium Triangle.
Its Olaroz/ Cauchari projects are adjacent to Orocobre’s (ASX:ORE) Olaroz lithium production project and SQM/Lithium Americas Cauchari development project.
LKE is currently drilling at the Kachi Lithium Brine Project, nearby Albemarle’s Antofalla Project, and expect to release results from April/May onwards.