Lake Resources (ASX:LKE) has retained Goldman Sachs as its financial advisor to assist in a search for a strategic partner in relation to the Kachi Lithium Brine Project in the Catamarca Province of Argentina.
The $220.47 market capitalisation company will begin the process of finding a strategic partner after the completion of a phase one DFS for Kachi, which is scheduled for December this year.
Lake explains this process enables it to widen the aperture of funding opportunities beyond its current conditional framework agreements and better optimise the economics of its offtake.
Lake says third parties that can provide equity capital, as well as assist in mobilising third-party project financing to fund the development capital expenditures for Kachi, represent top contenders.
The company currently owns the majority 80% stake in Kachi, while ion exchange direct lithium extract (DLE) technology provider Lilac Solutions holds the remaining 20% stake.
Lake will consider a range of funding alternatives including but not limited to the introduction of a strategic partner, project finance, pre-payments from potential customers, and royalties.
Chief Executive Officer (CEO) David Dickson says the company will now shift its focus onto the strategic delivery of the project, which provides Lake with the potential to become an important contributor to the world’s lithium supply.
Lake Resources is a lithium developer utilising ‘state-of-the-art’ ion exchange extraction technology for the production of sustainable, high-purity lithium from its flagship Kachi Project.
The Kachi Project sits within the renowned ‘Lithium Triangle’, where the company also owns 3 additional early stage projects.
Write to Adam Drought at Mining.com.au
Images: Lake Resources