Lithium exploration company, Lake ResourcesN.L. (ASX:LKE) today announced it has secured commitments to raise A$4.5million in an oversubscribed private placement to sophisticated andprofessional investors.
The original offer was increased from $4million due to significant demand from current shareholders, with the upsized$4.5 million raise to be completed by Monday 26 March 2018.
The funds will be raised by way of the issue of33,333,335 new ordinary LKE shares at $0.135 per share with an attached 1-for-2option exercisable at $0.20 on or before 15 December 2018.
LKE will be seeking quotation of the attachingoptions subject to meeting the listing requirements under the ASX ListingRules. Patersons Securities Limited and Hunter Capital Advisors Pty Ltd werejoint lead managers of the capital raise.
The funds will be used by the small-cap toundertake further exploration at its Olaroz, Cauchari and Paso Lithium BrineProjects, as well as providing cash flow for ongoing drilling and initialscoping studies at the Kachi Lithium Brine Project. A percentage of the fundswill be put towards repaying outstanding notes and general working capital.
LKE Managing Director Steve Promnitz commentedon today's announcement: "Lake is grateful for the overwhelming interest tosupport exploration over the Olaroz and Cauchari areas as they are immediatelyadjacent to high grade lithium production or drill holes with high grades andflow rates."
Get the latest articles straight to your inboxkeep me postedIt should be noted though, that this is an early stage play andinvestors should seek professional financial advice if considering this stockfor their portfolio.
The company's flagship brine projects covermore than 170,000 hectares and have similar settings to some other majorworld-class brine projects currently being developed in Argentina's LithiumTriangle.
Its Olaroz/ Cauchari projects are adjacent toOrocobre's (ASX:ORE) Olaroz lithium production project and SQM/Lithium AmericasCauchari development project.
LKE is currently drilling at the Kachi LithiumBrine Project, nearby Albemarle's Antofalla Project, and expect to releaseresults from April/May onwards.
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