Ann: Trading Halt, page-256

Lithium play Lake Resources sent out its brokers to source a $20 million shot in the arm on Monday, as its share price languishes 80.5 per cent lower than where it was 12 months ago.Warehousing for the Kachi direct lithium extraction technology demonstration plant under construction. Lake Resources had Barrenjoey and Canaccord Genuity seeking buyers for 214 million shares at 7¢ apiece, a steep 39.1 per cent discount to the last close. Morgans was mandated as the co-lead manager.The cash call was split as a $15 million placement and a $5 million share purchase plan. Bids into the placement were due by 4pm.Fund managers were told Lake Resources would use the proceeds to strengthen its balance sheet and liquidity profile, ahead of alternative financing for its flagship – and much delayed – Kachi project in Argentina.In November, Lake Resources hired Goldman Sachs to hunt for a strategic investor for Kachi that would be willing to buy enough equity to fund 30 per cent of project capex.A process was formally launched after the company released its phase-one definitive feasibility study in December and is expected to take nine months.Sources said Lake Resources had approached a wide pool of potential partners, including battery and car manufacturers, sovereign wealth funds, private equity as well as companies in lithium and oil and gas sectors.The Kachi stake has been pitched as a way for stakeholders to secure ex-China supply starting in 2028.Lake also has Citi and JP Morgan working as joint co-ordinators with export credit agencies to bring together the debt financing, which is expected to be 70 per cent of Kachi’s costs.The two banks have been engaged since June 2022, and recently extended their involvement to reflect that Kachi won’t be in production until late 2027 – instead of early 2025.