The company has received preliminary interest from over half a dozen international banks with strong experience of funding projects in Argentina subject to support from Export Credit Agencies.
This could be a big plus for Lake Resources (ASX:LKE) as it could enjoy a lower cost of capital for the Kachi project thanks to longer dated, lower cost ECA-led debt.
Lake is seeking about 70 per cent of financing support for the project, adding that the ‘sweet spot’ for ECA debt repayments is between 5 to 8 years post construction and build-out, implying total debt finance duration of up to 10 years.
It added that a number of sourcing opportunities have been identified where minimum export content thresholds can be met, making this project eligible for ECA support.
That it comes as many lithium producers have sold out their excess inventory is just icing on top of the cake.
The company remains well funded through to a final investment decision for Kachi, which is expected in the middle of 2022.