Lake Resources Raises $2.1M, Extends ATM Facility to 2031
Lake Resources has raised $2.1 million through its At-the-Market facility by issuing 65 million shares to Acuity Capital, while extending the agreement to 2031 to support its Kachi Project and working capital needs.
- Raised $2.1 million via At-the-Market facility
- Issued 65 million shares at 3.23 cents each to Acuity Capital
- Extended ATM agreement expiry to January 2031
- Increased collateral shares held by Acuity to 90 million
- Funds earmarked for Kachi Project strategic alternatives and working capital
Capital Raise Strengthens Balance Sheet
Lake Resources N.L. (ASX – LKE) has successfully raised $2.1 million through its existing At-the-Market (ATM) facility by issuing 65 million fully paid ordinary shares to Acuity Capital at a price of 3.23 cents per share. This issuance represents a modest 2.1% discount to the recent 15-day volume weighted average price, reflecting a balanced approach to raising capital without excessive dilution.
The funds raised will bolster Lake’s balance sheet as it continues to explore strategic alternatives for its flagship Kachi Project in Argentina’s Lithium Triangle, alongside supporting ongoing working capital requirements. The Kachi Project, known for its innovative ion exchange extraction technology, aims to produce high-purity lithium with a lower environmental footprint, aligning with rising demand for sustainable battery materials.
Extension and Expansion of ATM Facility
In a significant move, Lake Resources has extended the expiry date of its ATM facility by five years, pushing it out to 31 January 2031. This extension provides the company with a flexible and ongoing mechanism to raise equity capital as needed over the medium term, a strategic advantage in the volatile mining and lithium markets.
Additionally, the company has increased the number of shares held as security by Acuity Capital under the ATM arrangement to 90 million shares, up from previous levels. These collateral shares can be cancelled by Lake at any time, subject to shareholder approval, offering a degree of control over potential dilution.
Context and Market Implications
Lake Resources has previously utilized this ATM facility to raise over $50 million, demonstrating a consistent reliance on this flexible capital-raising tool. The remaining standby equity capital available now stands at nearly $200 million, underscoring the company’s capacity to fund future development phases or respond to market opportunities without immediate recourse to more traditional, and often more costly, financing routes.
While the announcement does not detail specific plans beyond the general strategic alternatives process for Kachi, the capital injection signals ongoing commitment to advancing the project amid a competitive lithium market. Investors will be watching closely for updates on how these funds translate into project milestones or partnerships.
Bottom Line?
Lake Resources’ extended ATM facility and fresh capital injection set the stage for strategic moves on the Kachi Project amid evolving lithium market dynamics.
Questions in the middle?
- What specific strategic alternatives is Lake Resources considering for the Kachi Project?
- How will the increased collateral shares impact shareholder dilution over time?
- What milestones or timelines can investors expect following this capital raise?
