Lake Resources Bolsters Financial Position with Non-Core Asset Sale

Lake Resources, a lithium developer with a strategic focus on its flagship Kachi project, has recently announced the sale of three non-core lithium brine assets in Argentina for $9 million USD (approximately $13.6 million AUD). This transaction not only provides non-dilutive liquidity but also aligns with Lake's commitment to maintaining a focused and efficient portfolio.

The sale of these non-core assets, including lithium brine tenements located in Jujuy Province, Argentina, reflects Lake's strategic vision for the Kachi Project. With a total resource estimate exceeding 10.6 million tonnes of lithium carbonate equivalent, Kachi is a tier-one asset that deserves the company's undivided attention. By divesting these non-core assets, Lake Resources strengthens its financial runway, enabling it to focus on progressing the Kachi Project and securing high-value strategic partnerships and offtake agreements.

The sale of non-core assets is expected to have a significant impact on Lake Resources' financial runway and liquidity position. As of 30 September 2024, Lake had approximately $17.5 million AUD in cash on hand. With the expected proceeds from the sale, the company's pro-forma cash position will be around $31.1 million AUD. This enhanced liquidity will support Lake's focus on advancing the Kachi Project and bolster its financial position into 2026.



The sale of non-core assets also affects Lake Resources' ability to secure strategic partnerships and offtake agreements for the Kachi Project. With a pro-forma cash position of approximately $31.1 million AUD and additional capital raising capacity, Lake is well-positioned to advance the Kachi Project and benefit from an evolving lithium market landscape. The sale reflects Lake's commitment to maintaining a focused and efficient portfolio, which is crucial for securing high-value strategic partnerships and offtake agreements.

In conclusion, Lake Resources' sale of non-core assets is a strategic move that bolsters the company's financial position and aligns with its focus on the Kachi Project. The transaction provides non-dilutive liquidity, strengthens Lake's financial runway, and enhances its ability to secure strategic partnerships and offtake agreements. As Lake continues to progress the Kachi Project, investors should closely monitor the company's developments and the evolving lithium market landscape.