Placement upsized by $1.9M to $3.4M
Brisbane, Feb 24, 2020 AEST (ABN Newswire) - In a sign of renewed investor confidence, lithium explorer and developer Lake Resources NL (
ASX:LKE) (LK1:FRA) announced today it has extended and upsized its private placement, with commitments received to raise a further $1.9 million before costs, which will result in the issue of approximately 47.5 million shares, at an offer price of $0.04 per share, to sophisticated and professional investors. Settlement is anticipated to be Wednesday, 26 February 2020. This will bring the total amount raised under the placement to an amount of approximately $3.37 million with the issue of approximately 84.02 million new placement shares in total (refer to announcements of 14 and 20 February 2020 for information on prior placement share issues). The Company is preparing a supplementary prospectus which will address these matters which is anticipated to be lodged on or around 26 February 2020.
Share Purchase Plan (SPP) Update
The Share Purchase Plan Offer, to raise up to $1.5 million before costs, has received strong support following the Company's 21 February 2020 announcement, "Bill Gates-Led Fund Back's Lake's Technology Partner Lilac."
However, the SPP still has capacity available and closes on Friday 28 February. In the event that the SPP is oversubscribed, all participants will be scaled back on a pro-rata basis.
Eligible Shareholders can subscribe for up to $30,000 worth of new Shares at an issue price of $0.04 per Share up until the SPP Offer closes. The issue price of $0.04 per Share is the same as the private placement, at a 20% discount to the 10 trading day VWAP ($0.05) as at the close of Friday 21 February 2020 and at a 20% discount to the 5 day VWAP prior to the date of announcing the capital raising program.
Please see the relevant documentation under a Prospectus lodged on 10 February 2020, which is available on the Company's website www.lakeresources.com.au. The supplementary prospectus which is anticipated to be lodged on or around 26 February 2020 will set out details of the rights of applicants under the SPP to withdraw their application within one month and be repaid their funds.
Lake's Managing Director, Steve Promnitz said: "We are delighted by the response from investors, particularly following the announcement that some of the best known successful investors of the global business community is backing our key technology partner, and that Lake's Kachi project is the first brine project where this technology will be actively developed on site".
"These are exciting times for Lake and Lilac as we advance this new, sustainable solution and we welcome the support from all investors in helping make this a reality."
About Lake Resources NL
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is a clean lithium developer utilising state-of-the-art ion exchange extraction technology for production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina among three other projects covering 220,000 ha.
This ion exchange extraction technology delivers a solution for two rising demands - high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials with low carbon footprint and significant ESG benefits.
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