The Lake Resources N.L. (ASX: LKE) share price is on the move in early trade on Wednesday following a company announcement.
At the time of writing, shares in the lithium explorer are down 18% at $1.04 apiece.
What did Lake announce?
The company updated investors on the progress made on its Pilot Project Agreement, dated for around 21 September 2021 with Lilac Solutions Inc.
Lake says that Lilac will “earn in to the Kachi Project, up to a 25% stake, based on achievement of certain milestones under the agreement by an agreed date”.
Such milestones include completing at least 1,000 hours of operations and producing a lithium carbonate feed totalling at least 2,500 kg from the site.
However, it’s understood that a dispute has arisen with respect to the timing of these milestones.
Whilst work has been continuing at Kachi, a dispute has arisen between Lake and Lilac as to the date by which these milestones need to be achieved, with Lake considering the milestones must be achieved by 30 September 2022 and Lilac considering it has until 30 November 2022 to do so.
To resolve the dispute, Lake has exercised its rights to have the dispute resolved either by agreement of both Lake and Lilac or by arbitration.
If the milestones are not achieved by the required date, then Lake has certain buy back rights under the agreement which it may exercise at its option.
Until the matter is sorted, work continues to progress on the definitive feasibility study (DFS) at the site.
More updates regarding any resolution and the ongoing DFS will be released from Lake in due course.
The post Lake Resources share price slides 18% amid market rout and project dispute appeared first on The Motley Fool Australia.
Should you invest $1,000 in Lake Resources N.l. right now?
Before you consider Lake Resources N.l., you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lake Resources N.l. wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of August 4 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Why did the Core Lithium share price leap another 6% on Tuesday?
- Are Yamaha and Toyota about to upend the ASX lithium share party?
- Broker tips 100% upside for Lake Resources share price
- Here are the 10 most shorted ASX shares
- Here are the 3 most heavily traded ASX 200 shares on Friday
Motley Fool contributor Zach Bristow 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.
from The Motley Fool Australia https://ift.tt/KIyLMms
Leave a Reply