Australia's Lake Resources launches review of Argentina lithium project
May 7 (Reuters) - Australia's Lake Resources (LKE.AX), opens new tab 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 Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
6 hours ago
- Reuters
Argentina launches $2 billion repurchase agreement to boost reserves
BUENOS AIRES, June 9 (Reuters) - Argentina's central bank will launch a repurchase agreement of up to $2 billion, known as a REPO, to boost its foreign reserves, it said on Monday. The deal - announced alongside other measures to increase the central bank's reserves - comes ahead of an expected review with the International Monetary Fund (IMF) of the country's recently signed $20 billion loan agreement. Argentina needs to boost its reserves ahead of the review, and has said it will not purchase dollars locally to do so. On Monday, the bank reported $38.60 billion in reserves, short of the $40 billion needed. The REPO deal is set for Wednesday, the central bank said in a statement.
Reuters
11 hours ago
- Reuters
Canada's Allied Gold could look at options for power supply deal at Sadiola mine
TORONTO, June 9 (Reuters) - Canadian miner Allied Gold could look at alternative options for a power supply deal at its Sadiola mine in Mali following a surge in gold prices and the emergence of new opportunities, its CEO told Reuters in an interview on Monday. The gold miner signed an agreement in February with UAE-based Ambrosia Investment, giving Ambrosia a 50% stake in the mine in return for installing a new power supply system that would have improved the mine's costs. Allied Gold was also supposed to receive $500 million, with approximately $250 million in upfront cash consideration from Ambrosia. The deal is yet to close. Allied Gold CEO Peter Marrone said the deal may close in June, but if it does not, it is because other options have become available to the company. "Our position in the country has changed dramatically along with gold prices," Marrone said. "The world has changed since we put the deal together." Gold prices have surged nearly 30% this year to date and hit a record $3,500.05 per ounce on April 22. Ambrosia Investment did not immediately respond to a request for comment. Marrone said the universe of power solutions for the company changed dramatically after Allied Gold signed a new mining convention with the Mali government last year. Mali is Africa's third-largest gold producer and the military-led government wants to increase revenue from the mining sector. The government believes current arrangements are unfair and has said that foreign multinationals must comply with its demands if they want to continue operating. The country is in dispute with another Canadian miner, Barrick Mining, which is the only gold miner that has not signed Mali's new mining code. Allied Gold said it took a pragmatic approach to settling with the government. "We looked at how best we can deliver returns to our investors, and came to the conclusion that let's take an action based on cooperation and support," Marrone said. Allied Gold, already listed in Toronto Stock Exchange, began its dual listing on Monday on the New York Stock Exchange.
Finextra
11 hours ago
- Finextra
LSEG to provide trading technology to Brazilian digital exchange A5X
LSEG (London Stock Exchange Group) today announced that it has signed a strategic agreement to provide its trading, clearing, and market surveillance technology to A5X, S.A. (A5X), Brazil's first next-generation derivatives and futures exchange of its kind. 0 This announcement follows intensive joint design efforts to tailor LSEG's systems specifically for the Brazilian market, regulators, and A5X's unique requirements, a critical step in the platform's development and a key enabler of its swift and successful deployment. Under the agreement, LSEG will deliver its integrated market infrastructure technology suite, including pre-trade risk management, ultra-low latency matching engine, market data distribution and real-time surveillance, and will provide end-to-end post-trade platform including clearing, settlement, and risk management. A5X will operate LSEG's suite, integrating it into its state-of-the-art technology ecosystem. Designed for rapid configuration and seamless upgrades, the combined solution brings a powerful technology stack to the Brazilian market to help drive growth, liquidity, and innovation. Ron Lefferts, Group Head of Sales & Account Management, LSEG: 'As Brazil's economy grows and its markets continue to evolve, LSEG will deploy its real-time insights, performance analytics, and market infrastructure expertise to empower A5X in its journey of creating a more robust, innovative and efficient market in Brazil. Embedded in financial systems worldwide, our technology powers economies by strengthening market resilience, supporting compliance, and enabling traders to make data-driven decisions.' Carlos Ferreira, Chief Executive Officer, A5X: "We are incredibly honored to have the opportunity to bring LSEG to our side on the journey of creating a more efficient and innovative market in Brazil, driving growth and transformation. A5X was born to improve the experience of all investors in Brazil and the technology partnership with LSEG, combined with the access to its deep knowledge of global markets and products, materially strengthens our position to achieve this goal.' A5X aims to be ready for regulatory testing by Q4 2025 and for commercial launch of the new platform in H1 2026. The partnership lays the groundwork for a seamless, end to end derivatives and futures ecosystem in Brazil and this could significantly reshape Brazil's financial landscape, designed to accelerate product innovation, enhance price discovery and streamline operational risk across the trade lifecycle.
