Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Lake Resources fields strong interest for debt financing amid electric vehicle boom

% of readers think this story is Fact. Add your two cents.

Lake Resources N.L. (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) is moving closer to securing debt financing to develop its flagship Kachi Lithium Project from which it aims to produce cleaner and greener lithium to service growing global demand.

The clean lithium developer said more than half a dozen major international banks had expressed interest in providing a cash injection for the lithium play as the electric vehicle industry comes to the fore.

Of course, a bank’s participation is subject to Export Credit Agency approval, so SD Capital and GKB Ventures have been appointed to facilitate any sign-off on funding runways.

In the meantime, Lake’s Kachi project remains funded through to a final investment decision on construction finance, which is anticipated to occur mid next year.

A focus on sustainability

Speaking to the progress towards debt financing, Lake managing director Steve Promnitz said: “Export credit agencies and the project finance banks are committed to the new energy transition and to projects with an environmental, social, and corporate governance benefit that includes sustainable development goals.

“As a company focused on the sustainable, direct extraction of lithium to produce a high-quality, battery-grade product, Lake is ideally positioned to contribute to the achievement of these goals.

“We look forward to advancing these talks further, together with potential international off-takers, as we progress the Kachi definitive feasibility study towards a successful outcome.”

Funding facility expanded

Recently, Perth-based investment bank Acuity Capital expressed further confidence in Lake’s operations by expanding its funding runway.

In July 2018, Acuity established a controlled placement agreement with the ASX-lister. Since then, however, the investment bank has expanded the placement’s size to A$30 million, providing Lake with access to a larger capital pool.

To date, Lake has drawn down nearly A$4.76 million under the placement facility, with about A$25 million still available as standby financing until January 2023.

The road to debt financing

In order to advance lower-cost funding discussions, SD Capital and GKB Ventures have chosen to focus on Export Credit Agencies (ECAs).

ECA-led financing would lead to lower-cost, longer-term debt, generally accounting for roughly 70% of the funding required and involving a 10-year repayment scheme.

Commenting on potential financing for Kachi in a joint statement, SD Capital’s David Buckle and GKB Venture’s Gabriel Buck said: “We are greatly encouraged by the progress being made and the early positive response from the project finance banks.”

Ultimately, Lake said estimates involving the potential size and duration of a debt funding package would be provided in the coming months after it received expressions of interest.

Meanwhile, the lithium developer is confident it has enough capital to progress work through to a final investment decision at Kachi.

At the end of 2021’s March quarter, Lake had A$24 million in the bank to sustain its operations.

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.