Lithium explorer Lake Resources has rejected allegations by short-selling research activist J Capital that its direct lithium extraction (DLE) technology is unsuitable for commercial-scale lithium production in its Kachi project in the Andes, Argentina.
Lake said its DLE contractor Lilac Solutions has packaged a modular shipping plant built in California in Argentina to demonstrate its DLE technology.
He also said Lilac has completed extensive test work in support of Lake’s pre-feasibility study, with J Capital’s claims about high costs, water use and toxic waste not belonging to Lilac’s technology. .
Preliminary revenues at Lake Resources soared to a valuation of more than $ 2 billion earlier this year as retail investors ’enthusiasm for companies linked to demand for electric vehicles or lithium soared. .
Lake also acknowledged that former CEO Stephen Promnitz sold shares of the business without approval in April 2022.
Mr. Promnitz resigned from the business in June 2022 and, according to a broker report, sold all of his shares shortly thereafter.