Technology provider Lilac Solutions, Inc and Lake Resources (OTCMKTS:LLKKF) on September 21, 2021, entered into an agreement for technology as well as funding to develop Kachi Lithium Brine Project in Argentina.
The partnership terms specify that Lilac will gain an equity stake in the project for giving technological expertise to advance the project. The partnership will ensure the production of the best quality lithium in the market, with recovery rates of 80-90% and purity of 99.97%. Lilac’s efficient direct extraction method will ensure new industry standards for an environmentally friendly production method.
Lake’s prices surged by 22.4% within an hour of opening before returning to normal trading, showing investor confidence in the partnership. Over 18 million shares were exchanged in an hour.
Lake’s managing director Steve Promnitz, said that the firm has progressed systematically through the pilot stage and testing and is keen on the partnership established. Promnitz added that Lilac’s technology is disruptive and will reduce operating costs boosting lithium recovery.
Lilac solutions will be providing modular processing technology as well as engineering teams for a return of 25% stake in Lake’s Kachi project. Lilac will be providing funds of about US$50 million.
Lilac’s chief executive officer Dave Snydacker said that the project is a globally important one for lithium resources. Research from JP Morgan and Macquarie University shows that the lithium market is now in a deficit, with supply struggling to keep demand beyond 2030.
On Wednesday, LLKKF stock soared 21% at $0.4349 with more than 2.10 million shares, compared to its average volume of 1.26 million shares. The stock has moved within a range of $0.4130 – 0.4800after opening the trade at $0.42.