Myth Exposed, page-25

Lke Annual report 2022:-

Export agency funding
Securing low-cost funding for Lake’s project development
is beneficial, particularly during a period of rising global
inflation and interest rates.
In August 2021, Lake secured indicative terms from UK
Export Finance (UKEF), Britain’s official export credit agency,
which signed an Expression of Interest (EOI) to fund 70
per cent of the capital expenditure (capex) to build the
Kachi project.
Whilst providing indicative support for Lake’s clean lithium
project, the proposed project finance delivers a significantly
lower cost of capital than traditional financing structures.
The funding also reflects Kachi’s significant ESG benefits
for stakeholders, amid the global drive towards net
zero emissions.
Just a month later, Canada’s export credit agency, Export
Development Canada, provided a similar Letter of Interest to
work alongside UKEF in providing the 70 per cent capex for
Kachi’s project funding.
The lower interest rates on offer and longer repayment terms
associated with export credit agency funding further adds to
its benefits for shareholders.
Lake welcomes such backing from Britain and Canada as a
sign of their confidence in our projects. The Board is working
to convert these indicative offers into binding commercial
agreements ahead of the start of production at Kachi. We
anticipate a Final Investment Decision (FID) around the
middle of 2023.


There is no lack of support out there.


IMO DYOR