The Lake Resources NL (ASX: LKE) share price has soared into the green today, extending its long run into the money.
At the closing bell, Lake Resources shares were exchanging hands at 66 cents apiece, an approximate 15% gain from the market open.
Here we cover some of the tailwinds behind Lake Resources shares over the last month or so.
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Drilling, options and happy results
Last month, Lake revealed drilling had commenced at its flagship lithium brine project in Argentina.
According to the release, the new drill testing regime increases capacity of lithium production by around double the current amount.
Moreover, Lake also realised more favourable sampling and testing results from assays conducted at the Argentinian site.
In addition, Lake recently announced it was granting a bonus issue of options to eligible shareholders, granting one free bonus option for every 10 Lake Resources shares on the books.
The options can be exercised on or before their expiry of 15 October at a strike price of 35 cents. However, Lake is sweetening the deal for its shareholders.
For every option that is exercised, Lake will then issue a second option to the investor. In effect, this gives shareholders the right – but not obligation – to exercise their option at a strike price of 75 cents.
The designated strike price on these options represents a 13.6% premium on the current Lake Resources share price.
Finally, Lake Resources released its quarterly results on 2 August, detailing a number of progress points achieved.
Most notably, Lake received a wealth of interest to finance its Kachi Lithium project, based on its "exceptional quality" product with low carbon footprint. The company also refreshed its pre-feasibility study on the site, to reflect lithium market dynamics.
This fundamental momentum has carried through into the company's growth engine over the past month.
Lake Resources shares have climbed 80% into the green over this time. For comparison, the S&P/ASX 200 Index (ASX: XJO) has posted a return of about 3%.
Lake Resources share price snapshot
The Lake Resources share price has posted a year-to-date gain of 804%. It has also soared 1,733%. over the past 12 month.
These returns have far outpaced the broad index's return of around 25% over the past year. Over the past week alone, Lake Resources shares have climbed 53.5%.
