Lake Resources and Lilac Solutions Partnership

Marval O’Farrell Mairal, working alongside Clayton Utz and Wilson Sonsini Goodrich & Rosati, advised Lilac Solutions on the transaction.

Argentine-focused lithium exploration and project development company Lake Resources NL (ASX: LKE) and Lilac Solutions, Inc. have entered into a partnership to leverage Lilac’s proprietary ion exchange technology for the Kachi brine with the goal of establishing a rapid, robust, and low-cost process for producing lithium at Kachi. Lilac is initiating engineering work to confirm low operating costs for direct production of lithium carbonate or lithium chloride at Kachi using the Lilac Technology.

The Kachi Lithium Brine Project covers 54,000 hectares (133,000 acres) over almost an entire lithium-bearing salt lake in Catamarca province, approximately 100 km (60 miles) south of FMC’s Hombre Muerto Lithium brine production operation. FMC Corp has been operating its lithium business in Argentina for over 20 years.

Lilac Solutions is transforming lithium production with its innovative ion exchange technology for extraction of lithium from brine resources. Lilac deploys unique ion exchange media and related processes to extract lithium from a wide variety of brine resources with high recoveries, minimal costs, and rapid processing times. Benchtop testing of other brines has indicated recoveries over 95% in less than 2 hours versus 9-24 months in evaporation ponds. This approach eliminates the need for evaporation ponds, which are expensive to build, slow to ramp up, and vulnerable to weather fluctuations.

A significant environmental benefit comes from the removal of evaporation ponds as the footprint of the operation is significantly reduced. Further, the method allows for the remaining brine to be re-injected into the same aquifer from where it is sourced, without significantly adjusting the water quality, thereby preserving an aqueous resource in an arid environment.

Lilac’s technology can economically access brines with low lithium concentrations and high concentrations of other salts, such as magnesium. Cost advantages come from reduced time, higher recoveries and a simplified extraction flowsheet with fewer reagents. The technology is modular to suit various project sizes and integrates with conventional plant designs for production of battery-grade lithium carbonate and lithium hydroxide. The technology has been successfully tested with real brine samples across the Americas.

Marval O’Farrell Mairal advised Lilac Solutions with Leonardo G. Rodriguez (Picture), María Mercedes Rudolph, Agustina Dellacasa and Victoria Suárez Pino.

The Clayton Utz team comprised of Perth-based Corporate partner Brett Cohen, assisted by special counsel Armin Fazely, and on the Taxation aspects, partner Peter Feros and special counsel Cameron Forbes.

Involved fees earner: Brett Cohen – Clayton Utz; Armin Fazely – Clayton Utz; Peter Feros – Clayton Utz; Cameron Forbes – Clayton Utz; Agustina Dellacasa – Marval, O’Farrell & Mairal; Leonardo Rodríguez – Marval, O’Farrell & Mairal; Maria Mercedes Rudolph – Marval, O’Farrell & Mairal; Victoria Suarez Pino – Marval, O’Farrell & Mairal;

Law Firms: Clayton Utz; Marval, O’Farrell & Mairal;

Clients: Lilac Solutions;