SYDNEY: Lake Resources N.L. (ASX:LKE; OTC:LLKKF) has announced the sale of three non-core lithium brine assets in Argentina to Austroid Corporation for $9 million USD (approximately $13.6 million AUD). The assets, located in Jujuy Province, include Paso de Jama, Olaroz, and Cauchari.

The transaction will provide Lake Resources with additional liquidity to support its flagship Kachi Project. CEO David Dickson highlighted Kachi’s premier status with over 10.6 million tonnes of lithium carbonate equivalent and strong economics. The company will focus all resources on the Kachi Project, which has enough brine for a 25-year project with expansion potential.

Dickson stated the competitive sale process maximized value, resulting in an excellent outcome for shareholders. The transaction also positions Lake to benefit from an evolving lithium market.

Lake Resources remains debt-free, with significant financial liquidity into 2026. The company has $17.5 million AUD in cash (as of September 30, 2024) and an expected pro-forma cash position of $31.1 million AUD after the transaction. Shareholder approval for additional placement capacity under ASX Listing Rule 7.1A will further enhance liquidity.

The increasing global interest in lithium, driven by favorable investment conditions in Argentina, underscores the strategic value of Argentinian lithium assets. The Kachi Project, one of the largest Direct Lithium Extraction (DLE) brine resources in Argentina, offers high lithium recovery rates with lower environmental impact.

The transaction is subject to customary closing conditions and is expected to be completed by the end of 2024. Lake Resources will discuss the transaction’s impact on liquidity at the Annual General Meeting on November 21, 2024, at 9:00 am Brisbane time (10:00 am AEDT).