SYDNEY, Nov. 13, 2024 /PRNewswire/ -- Lake Resources N.L. (ASX:LKE; OTC:LLKKF) (Lake or the Company) is pleased to announce that a wholly-owned subsidiary of Lake has entered into an asset sale agreement with Austroid Corporation for the sale of three of its non-core lithium brine assets in Argentina for $9 million USD (approximately $13.6 million AUD) (Transaction).

The non-core assets included in the Transaction are lithium brine tenements and related assets located in Jujuy Province, Argentina; namely Paso de Jama, Olaroz, and Cauchari.

The Transaction will provide Lake with additional, non-dilutive liquidity and the funds will be used to support the Company's financial runway to continue its focus on progressing its flagship asset, the Kachi Project (Kachi or the Project).

"Given that Kachi is a premier tier-one asset with a total resource estimate exceeding 10.6 million tonnes of lithium carbonate equivalent (see ASX Announcement on 22 November 2023) and strong economics, the Company has decided to focus all of its resources on the Project," Lake CEO David Dickson said.

"We have more than enough brine at Kachi for a 25-year project with potential for expansion."

Mr Dickson said that Lake conducted a competitive process to maximize value and the USD $9 million was an excellent result for shareholders. The sale reflects Lake's commitment to maintaining a focused and efficient portfolio.

The Transaction also further positions Lake to advance Kachi and benefit from an evolving lithium market landscape – especially in light of recent industry developments.

"Lake remains focused on securing high value strategic partnerships and offtake agreements to bolster Kachi's development," Mr Dickson said.

On the Financial Runway:

Mr Dickson said that Lake had no debt or other major capital commitments and had aggressively right sized the business for the current lithium commodity price environment. With cash on hand as at 30 September 2024 (approximately $17.5 million AUD, see ASX Announcement on 30 October 2024) and the expected proceeds from the Transaction, the Company's pro-forma cash position is approximately $31.1 million AUD. With additional capital raising capacity available to the Company, Lake is well positioned with strong financial liquidity into 2026.

Approval by the shareholders of the additional placement capacity under ASX Listing Rule 7.1A as requested by the Company at the upcoming Annual General Meeting would also further enhance the Company's liquidity position.

On the Sector Landscape:

"The increasing interest in lithium plays from global investors across the United States, Europe, China, the Middle East and India, including major mining and energy players, underscores the strategic value of Argentinian lithium assets driven by improved investing conditions in Argentina following passage of the Promotional Regime for Large Investment (The Régimen de Incentivo para Grandes Inversiones, otherwise known as RIGI). Rio Tinto's acquisition of Arcadium reflects this sentiment," Mr Dickson said.

The Kachi Project, located in the Catamarca Province, stands out as one of the largest Direct Lithium Extraction (DLE) brine resources in Argentina.

Rio Tinto's commentary on DLE technology's efficiency, scalability, and sustainability aligns with Kachi's value proposition.

"Our testing demonstrates significantly higher lithium recovery rates with markedly improved environmental benefits through lower water and land usage and reduced waste compared to alternative lithium extraction methods," Mr Dickson said.

Closing of the Transaction:

Closing of the Transaction and receipt of proceeds are subject to customary closing conditions and are expected to occur by the end of 2024.

Lake will discuss the Transaction as well as impact to its liquidity at the Annual General Meeting scheduled for 21 November 2024 at 9:00am Brisbane time (10:00am AEDT).

For investor queries, please contact:

InvestorRelations@lakeresources.com.au or log onto Investor Hub through Lake's public website

For media queries, please contact:

Nigel Kassulke at Teneo M: +61407904874E: Nigel.Kassulke@teneo.com

About Lake Resources N.L. (ASX:LKE OTC:LLKKF)

Lake Resources N.L. (ASX:LKE; OTC:LLKKF) is a responsible lithium developer utilising state of-the-art ion exchange extraction technology for production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina. Lake also has three additional early-stage projects in this region.

This ion exchange extraction technology delivers a solution for two rising demands – high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials with low carbon footprint and significant ESG benefits.

Forward Looking Statements:

Certain statements contained in this announcement, including information as to the future financial performance of the projects and the Company, are forward-looking statements. Such forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Lake Resources N.L. are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results, expressed or implied, reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production and prices, operating costs and results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions and affected by the risk of further changes in government regulations, policies or legislation and that further funding may be required, but unavailable, for the ongoing development of Lake's projects. Lake Resources N.L. disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. All forward-looking statements made in this announcement are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Lake does not undertake to update any forward-looking information, except in accordance with applicable securities laws.