Lake Resources NL (ASX:LKE, OTCQB:LLKKF) has boosted its balance sheet to the tune of A$39 million on utilising its At-the-Market (ATM) Subscription Agreement with Acuity Capital.
The company has agreed to issue 40 million fully paid ordinary shares to Acuity Capital at A$0.975 per share.
This represents a premium of 2.1% to the 15-trading day VWAP of $0.955 to March 7, 2022.
“Period of rapid expansion”
Lake chairman Stu Crow said that the successful issue of shares to Acuity under the ATM Subscription Agreement further strengthened the company's balance sheet.
“Along with Letters of Interest from Export Credit Agencies of the UK and Canada to fund up to 70% of the development costs of the Kachi Project, these funds will support a period of rapid expansion and increased activity across LKE’s four brine projects in Argentina,” he said.
The 40 million Lake shares will be issued out of the company’s LR7.1 capacity and funds raised will also be put towards working capital.
Settlement of the transaction is expected to occur on March 11, 2022.