Lake Resources N.L. (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) has agreed to extend the existing Controlled Placement Agreement (CPA) with Acuity Capital by an additional A$5.5 million with the expiry date extended to January 31, 2023.
The company, which is progressing a strategy of sustainably producing clean, high purity lithium products from its Argentine deposits utilising disruptive direct extraction technology, says the facility extension will allow greater flexibility.
New maximum of A$10 million
Originally the CPA provided Lake with up to A$4.5 million of standby equity capital with an expiry date in the coming weeks.
Lake and Acuity Capital have now agreed to extend and increase the available standby capital available under the CPA facility to a new maximum of A$10 million.
The company has previously utilised the CPA to raise a total of A$1.4 million and following the increase of the limit to A$10 million, the remaining standby equity capital available is $8.6 million.
As consideration, Lake has agreed to increase the shares held as security by Acuity Capital under the CPA through an additional issue of 25 million shares out of its LR7.1 capacity.
The company may, at any time, terminate the CPA, as well as buy back and cancel these collateral shares for nil consideration, subject to shareholder approval.