Lake Resources launches review of Argentina lithium project
Australia’s Lake Resources said on Wednesday it has launched a strategic review of its flagship Kachi lithium project in Argentina, adding that the asset is significantly undervalued despite surging long-term demand for battery metals.
The review aims at exploring options, including the sale of a stake in the project as well as a potential sale or merger of the lithium developer.
The Kachi lithium brine project is the largest independent project across South America’s “lithium triangle”, with total resources exceeding 10.6 million metric tons of lithium carbonate equivalent, according to the miner.
The decision to explore strategic alternatives is also bolstered by recent instances of companies with Argentine lithium projects receiving proposals significantly exceeding their current market capitalizations, Lake Resources said.
The review comes more than five months after it agreed to sell three of its non-core lithium brine assets in Argentina for $9 million.
(By Nichiket Sunil; Editing by Mohammed Safi Shamsi)
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