IMO
There are always a lot of negative comments on LKE HC about CRs. The bottom line is that LAKE is exploration turn potential producer. It's all negative cashflow until the resource is recovered.
There are only so many ways to raise funds and all finders want their pound of flesh.
So the board could raise funds via a loan, with high interest. Default on a loan could see the whole show sold up on shareholders at a massive discount. The money borrowed still gets spent so the company has a liability and an obligation which reduces its balance sheet value and impinges future cashflow. It can make further borrowing difficult and could even affect the ability to raise funds in other ways like CRs.
It could sell other assets. That's always a consideration.
It could find an off take partner or production partner. Often this happens around DFS and reduces risk. Lake will likely need this into future to ramp up to production. Hard to do without proven product (pending) and critical to find the right partner.
So that leaves CR. Cheapest form of finance. Yes it dilutes shareholding in the company. Yes it often depresses share price. But without funds, we don't operate, we don't have a business, our shares are worth ?? probably nothing.
If you are frustrated with board decisions and spending and time delays....ok
If you feel reinvesting money into other lease ground may have been a bad decision....ok
Everyone has had a choice to stay in or sell out.
This is the the life and times of an exploration company and especially one moving towards production.
If you don't like how these companies roll then maybe don't get involved.
Lake is a company with a potential point of difference and a significant potential resource but it will certainly require more capital introduced to see it get there (which means spending a lot of money). This could mean more CRs or alternatives. Either way, the money raised will get spent.
As the boxes get ticked, hopefully this becomes a must have stock and get the SP right up there.
CRs and price dilution
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