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Tuesday, October 11, 2022 7:44:35 PM
Strategic investment and offtake agreement with SK On
Highlights
• Offtake of up to 25,000 tonnes per annum of high purity lithium from Lake's Kachi Project.
• SK On to acquire 10 percent of Lake via strategic investment underpinning the development of a clean lithium supply chain to meet global environmental demand for electric vehicles, particularly in North America.
• Continued de-risking of the project for financiers and investors.
Clean lithium developer Lake Resources NL (ASX:LKE; OTC:LLKKF) advises it has entered into a Conditional Framework Agreement with SK On Co., Ltd. (SK On) for the offtake of up to 25,000 tonnes per annum (tpa) of lithium from Lake's Kachi Project, including a 10 percent investment by SK On in Lake via the issue of new ordinary shares.
Significant terms of the CFA are as follows:
• Strategic investment of a 10 percent stake in Lake (20 trading-day VWAP prior to 12/10/22)
• Offtake of 50 percent of Kachi project lithium product up to 25,000 dmt (LCE)
• Initial five-year term plus option for a further five years
• Offtake priced on an agreed market price formula based upon the average quoted price in the quotation period.
The CFA is subject to a standard set of conditions being achieved by Lake Resources including: DFS; Lilac demonstration plant results; financial due diligence; and product specifications.
The CFA becomes unconditional upon the satisfaction of conditions precedent.
“The CFA delivers a long-term strategic agreement with SK On, one of the world’s pre-eminent lithium-ion battery producers with a major growing presence in the North American market,” said Lake's Executive Chairman, Stu Crow.
He said the agreement strengthened Lake’s long-term shareholder base and added to the equity component required for the drawdown of debt facilities for project development.
Lake’s new CEO and MD David Dickson said the CFA cemented the ability of Lake to scale up environmentally responsible production and also afforded SK On the opportunity to participate in Lake’s other projects as they move to development to ensure a supply of high-quality lithium products are available to SK On.
Click here to read the announcement
Stu Crow
Executive Chairman
Lake Resources
If THEIR IS ONE THING I AM SURE ABOUT IS I AM USUALLY WRONG
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