(MENAFN- ABN Newswire)
Half Yearly Report Brisbane, Mar 19, 2018 AEST (ABN Newswire) - The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Lake Resources NL ( <>
Corporate
During 2016, the Company adjusted its exploration focus to the exploration and development of lithium brine projects and lithium hard rock projects in a prime location amongst the major lithium companies in Argentina, having conducted activities in Argentina previously. In 2017, the Company holds four separate lithium projects in Argentina, each with potential to be a substantial stand alone development project, or colloquially, each "a company maker". Lake holds one of the largest lease holdings of lithium brine and hard rock projects of a listed entity on the ASX.
On 14 November 2016, the Company completed the acquisition of an unlisted company LithNRG Pty Ltd, with exciting lithium brine projects in three large packages of mineral lease applications (over 90,000 Ha) around salt lakes in North West Argentina. The leases had been established prior to the significant interest by majors and investors in lithium in Argentina. Lake controls 100% the subsidiary LithNRG Pty Ltd with its Argentine subsidiaries, Minerales Australes SA and Morena del Valle Minerals SA. The transaction was share based, followed by two private placements in December 2016 and February 2017.
An option agreement was entered into over a large block of mining leases and exploration applications over lithium bearing pegmatites in Argentina in February 2017. Consideration for the transaction are shares in the Company. This agreement was extended into FY2018 to allow completion of the establishment of the local entity, Petra Energy SA, and 19 million LKE shares would be issued if the option is exercised.
An unsecured debt security (note) was announced in November 2017 and raised $1.665 million from sophisticated and professional investors in the form of 1,665,000 unsecured notes at $1. This note will be repaid in the second half of FY2018 as other funds become available.
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http://abnnewswire.net/lnk/1J540MI2
About Lake Resources NL
The three key brine projects, Olaroz/Cauchari, Paso and Kachi, have similar settings to major world class brine projects being developed in the highly prospective Jujuy and Catamarca Provinces. One project is located next to Orocobre's Olaroz lithium production and SQM/Lithium Americas Cauchari project. The Kachi project covers 50,000 Ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project.
Drilling at Kachi has shown conductive brines in thick porous sands with results anticipated over the coming months. Surface sampling has revealed positive lithium results which will be expanded through the drilling program and geophysics. Exploration and permitting over Kachi and the other projects will provide several catalysts for the company's growth as these areas are assessed for major discoveries.
Significant corporate transactions continue in adjacent leases with development of SQM/Lithium Americas Olaroz/Cauchari project with an equity/debt investment over $300 million and Advantage Lithium's equity transaction in some of Orocobre's leases. LSC Lithium has also raised over $60 million on a large lease package in similar areas as Lake's properties. Nearby projects of Lithium X were subject to a takeover offer of C$265 million in December 2017.
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