Lake Resources NL (ASX:LKE, OTCQB:LLKKF) and its technology partner Lilac Solutions Inc have completed two key milestones in an earn-in agreement between the two companies, allowing Lilac Solutions to buy-in to the Kachi Project with a stake of up to 25%.
Lilac completed 1,000 hours of operations – including uptime, maintenance, monitoring and other work that constitutes operations as determined by Lilac in its reasonable discretion – of the Lilac Pilot Unit onsite at Kachi as the first milestone.
The second was the production of a lithium carbonate feed totalling at least 2,500 kilograms of lithium carbonate equivalents from onsite operations.
Work continues on advancing a definitive feasibility study (DFS) for Kachi.
Milestone deadline dispute
As work continued at Kachi, a dispute has arisen between Lilac Solutions and Lake Resources concerning the date by which the next set of milestones must be achieved.
Lake considers the deadline to be September 30, 2022, while Lilac believes it has until November 30, 2022, to achieve said milestones.
LKE has exercised its right to resolve the dispute; either through agreement by both parties or by arbitration.
Lake retained certain buyback rights under the agreement should the milestones not be met by deadline, an option the company may exercise.