Lake Resources' oversubscribed $20 million placement backed by global institutional investors

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) has received commitments to raise A$20.6 million via a placement of shares at 16.5 cents each to institutional investors. Every two new offer shares will have one attached option (around 62.5 million options) with an exercise price of 30 cents each with a two-year expiry, subject to shareholder approval. This transaction follows Lake’s announcement that it had secured approval for real-time electronic clearing and settlement in the United States for its OTCQB-listed shares. “Strongest financial position ever” Lake Resources managing director Steve Promnitz said: “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. “This transaction places the company in its strongest financial position ever. “Lake will hold in excess of A$25 million following this placement and anticipates a further $6 million to be added by July as existing options convert.” Funding Kachi development Lake’s flagship Kachi Lithium Brine Project now fully funded through to the construction phase in 2022 allowing the company to speed development of sustainable, high purity lithium. The net proceeds from the placement will be used to: Operate the lithium chloride direct extraction pilot plant in California; Commission the demonstration plant on site at Kachi to produce larger samples for off-takers; Complete the Definitive Feasibility Study (DFS) at Kachi; Complete the Environmental and Social Impact Study (ESIA) at the Kachi Project; and Exploration and evaluation studies across all projects and working capital. “Exposure to financial markets” Roth Capital Partners was appointed as financial adviser to assist the company broaden its investor base across global markets. Lake Resources chairman Stu Crow said: “This is a transformational moment for Lake and its shareholders. “We are excited to secure this support from North American, European and Australian institutional investors at this defining moment of the company’s development. “Roth Capital has introduced a number of new investors to Lake who follow the rapidly growing clean tech battery materials sector and will broaden our exposure to international financial markets.”