Why is the Lake Resources share price smashing the ASX 200 on Monday?

The S&P/ASX 200 Index (ASX: XJO) has had a very shaky start to the week as it currently stands. After initially shooting higher this morning, the ASX 200 has retreated at the time of writing, dropping 0.08% to back under 7,150 points.

But the same can’t be said of the Lake Resources NL (ASX: LKE) share price.

Lake Resources shares have had a dream start to the trading week. This ASX 200 lithium share closed at $1.05 last week. But the company opened this morning at $1.08 and climbed all the way to $1.11. Lake Resources has since settled down a little. But it is still going for $1.07 at present, up a decent 1.62% for the day thus far.

So why is the Lake Resources share price doing so well when the rest of the market is stuck in the doldrums?

Why are Lake Resources shares outperforming the ASX 200 today?

Well, there is some news out of Lake Resources itself today that is probably driving these positive returns for the company’s shares.

According to an ASX release from this morning, Lake Resources has patched up a dispute with Lilac Solutions. Both parties have an interest in the Kachi lithium project in Argentina. Lilac provides the technology that enables Lake to extract lithium chloride from brine at the project.

But both Lake and Lilac have been in dispute over the agreed timelines for the project. But no longer. Lake Resources has told investors today that it has signed a “contract amendment” that puts the dispute to bed.

Here’s some of what the release said:

[Lake Resources] is pleased to advise that a contract amendment has been signed to resolve the dispute between Lilac Solutions… and Lake Resources…

This amendment allows the teams to reset the relationship and jointly focus on delivery of the world class Kachi Project which will lead the industry in terms of high-quality Lithium produced with a minimal environmental footprint.

In resolving the dispute, Lake and Lilac have agreed to an amended timeline which both are confident can be achieved; as before, Lake will have certain buy back rights if Lilac does not meet agreed testing criteria in a timely manner.

So it seems that this good news is the reason behind the Lake Resources share price’s outsized performance so far this Monday.

Other ASX lithium shares in the green so far today include Pilbara Minerals Ltd (ASX: PLS), Core Lithium Ltd (ASX: CXO) and Liontown Resources Ltd (ASX: LTR).

The post Why is the Lake Resources share price smashing the ASX 200 on Monday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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