Lake Resources is exploring financing solutions for Kachi

PERTH (miningweekly.com) – Lithium developer Lake Resources has appointed project finance institutions Citi and JP Morgan as co-coordinators for its Kachi lithium project in Argentina.

The coordinators will work together on a loan financing package to finance the development of the 50,000 t/y Kachi project.

Lake Resources said on Friday that the proposed debt financing will be based on indicative support from UK Export Finance (UKEF) to cover 70% of the Kachi project’s total financing requirement, subject to UKEF approval and conditions. standard project funding.

Export Development Canada is also expected to participate alongside UKEF.

A previously completed updated pre-feasibility study estimated that the Kachi project could produce 25,500 t/y of lithium carbonate over a 25-year life, with estimated capital costs of $540 million.

The company said earlier this year that the Definitive Feasibility Study (DFS) would consider a production case of 50,000 t/y, given the increased demand from potential buyers. The DFS is expected to be completed by mid-2022.

The amount of debt financing offered will be governed by, among other things, the results of the DFS currently underway and the assessments of all studies by export credit agencies.