Lake Resources N.L. (ASX: LKE | OTCQB: LLKKF) has received firm commitments in an institutional placement to raise A$15M at A$0.07 per share.
The company has received strong support from offshore and domestic institutional investors leading to introduction of new high-quality investors to Lake’s register.
In addition to the placement, Lake will also be undertaking a share purchase plan (SPP) at the same price as the placement, to raise up to A$5M. The placement and SPP will raise total gross proceeds of up to approximately A$20M.
Lake’s CEO, David Dickson, said, “We are pleased with the level of support shown for Lake from both existing and new shareholders. The equity raising will provide funding capacity to support the delivery of the strategic partnership process. We are pleased to offer our existing retail shareholders the ability to participate in the capital raising via the SPP.”
The offer enhances Lake’s balance sheet by providing additional working capital and financial flexibility during the strategic partnership selection process for Kachi.
Lake is actively conducting outreach to a wide array of potential strategic partners including car and battery manufacturers, lithium producers, oil and gas companies, sovereign wealth funds, and private equity. The strategic partnership process is scheduled to conclude in the second half of 2024.
The funds raised will be used for working capital to extend runway, in addition to the recently announced cost saving measures, until the completion of the strategic partnership process.
Furthermore, upon settlement of the placement, Lake will have a strong pro-forma 31 December 2023 cash balance of A$46.3M to advance the strategic partnership process for Kachi.
To find out more, please visit www.lakeresources.com.au
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