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

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Sept 14 (Reuters) – Australian lithium developer Lake Resources NL (LKE.AX) said a dispute had arisen with Lilac Solutions Inc on the deadline of the U.S. partner achieving some milestones to obtain 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 attain the necessary milestones to earn around 25% stake in Kachi project, while Lake believes the milestones should be attained by Sept. 30, the Australian company said in a statement on Wednesday.

The milestones include Lilac completing at the very least 1,000 hours of operations of the Lilac Pilot Unit onsite at Kachi and creating a feed totalling at the very least 2,500 kg of lithium carbonate equivalents from onsite operations, Lake said.

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Lake, who signed a cope with privately-held Lilac last September to jointly develop the Kachi project, said it has exercised its rights to really have the dispute resolved either by agreement of both Lake and Lilac, or by arbitration. read more

Lake said it comes with an substitute for exercise certain buyback rights beneath the deal if Lilac will not achieve the milestone by the mandatory date.

Recently, short seller J Capital Research had claimed that Lake’s intend to produce lithium in Argentina was predicated on Lilac’s extraction process that likely can not work, allegations that Lake has refuted.

Lilac didn’t immediately react to a Reuters obtain comment.

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Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles.

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