Lake Resources in dispute with Lilac Solutions over stake in Argentina lithium project

Lake Resources NL

14/09/2022 02:45

Sept 14 (Reuters) - Australian lithium developer Lake
Resources NL  LKE.AX  said a dispute had arisen with Lilac
Solutions Inc over the deadline of the U.S. partner achieving
some milestones to get a 25% stake in Kachi lithium project in
Argentina, sending its shares down 20%.
    Bill Gates-backed Lilac considers it has until Nov. 30 to
achieve the necessary milestones to earn up to 25% stake in
Kachi project, while Lake believes the milestones must be
achieved by Sept. 30, the Australian company said in a statement
on Wednesday.
    The milestones include Lilac completing at least 1,000 hours
of operations of the Lilac Pilot Unit onsite at Kachi and
producing a feed totalling at least 2,500 kg of lithium
carbonate equivalents from onsite operations, Lake said.
    Lake, who signed a deal with privately-held Lilac last
September to jointly develop the Kachi project, said it has
exercised its rights to have the dispute resolved either by
agreement of both Lake and Lilac, or by arbitration.
 urn:newsml:reuters.com:*:nL4N2QN3J5
    Lake said it has an option to exercise certain buyback
rights under the deal if Lilac does not achieve the milestone by
the required date.
    Recently, short seller J Capital Research had claimed that
Lake's plan to produce lithium in Argentina was based on Lilac's
extraction process that likely does not work, allegations that
Lake has refuted.  urn:newsml:reuters.com:*:nL4N30E0CU
    Lilac did not immediately respond to a Reuters request for
comment.
    

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi
Aich)
 ((Himanshi.Akhand@thomsonreuters.com;))