Lake Resources responded to a recent report issued by J Capital, a short-seller, which it says puts forth incorrect technical information pertaining to its 100%-owned Kachi Li brine project in Argentina. The report’s description of the DLE process does not pertain to Kachi’s DLE technology being developed with Lilac Solutions. Lilac’s ion exchange (IX) process for Kachi has already undergone extensive testing and a demo plant is currently being constructed which should help alleviate further technical concerns. The recent decrease in Lake’s share price in our opinion offers a great investment opportunity at a low entry point. Part of this is likely in line with the broader market correction, but it is also apparent that selling continues based on both the CEO departure (read more) and now the self-serving short seller report. We don’t believe either one of these events impact the technical or economic merits of Kachi. Our only concern would be financing the 30% equity portion of the expanded US$870M capex which may lead to further share dilution or require alternative means of financing. Off-take MOU negotiations continue but management suggests there may be arrangements to help move Kachi forward, perhaps helping cover capex.
UEX Corporation (TSX:UEX) – UEX Receives a Competing Superior Offer from Denison
UEX Corp. has received a competing acquisition offer from Denison Mines Corp. (TSX:DML, Not Rated), reportedly superior to the offer it recently...
