The Lake Resources N.L. (ASX: LKE) share price is on the rise today following the company’s latest positive announcement.
At the time of writing, the clean lithium developer’s shares are flat at $1.01 a pop. But, during early morning trade, its shares reached an all-time high of $1.185.
What did Lake Resources announce?
Lake Resources shares are climbing after the company provided an update on the bonus options and funding facility.
According to its release, Lake Resources advised around 78% of shareholders took up the 1-for-1 additional bonus options. This resulted in 86.1 million new shares being issued to participating shareholders, providing around $30 million for the company.
If listed on the ASX, these options if converted will add a further $64 million to Lake Resources’ coffers by mid-next year.
The company declared that at the end of October it had about $63 million in cash reserves.
Lake Resources managing director, Steve Promnitz stated that the company is progressing its flagship Kachi Lithium Brine Project. It aims to have the final investment decision wrapped up and construction beginning next year.
In addition, the company extended its Controlled Placement Agreement (CPA) with Acuity Capital to 31 January 2023. The funding amount increased to $80 million, giving ample firepower to pursue growth opportunities.
Successful drilling has continued at the Kachi project and Lake Resources plans to upgrade and expand the resource. This will see the site move from Inferred Resources to Measured and Indicated (M&I) Resources.
The term Inferred Resources refers to quantity, grade (quality) and mineral content that is estimated with a low-level of confidence. On the other hand, M&I Resources is a reasonable to high-level of confidence based on enough samples being collected.
If this can be achieved, Kachi would become a significant producer globally. The company would bring high purity lithium carbonate to the market with a low carbon footprint.
About the Lake Resources share price
The Lake Resources share price has been one of the best places to invest in the past year, zooming an incredible 1,940%. While renewed investor sentiment within the battery industry has helped support the share price, the company has been making significant tailwinds.
Based on today’s price, Lake Resources commands a market capitalisation of roughly $1.35 billion, with approximately 1.2 billion shares outstanding.