Clean lithium developer Lake Resources NL announced that it has entered into a Conditional Framework Agreement with WMC ENERGY B.V. for the offtake of up to 25,000 mtpa of battery grade lithium from the Kachi Project and a 10% investment by WMC in Lake. The key terms of the CFA are as follows: A 10% investment in Lake at AUD1.20 per share to support the realization of the Kachi Project; Offtake of 50% of Kachi project lithium product up to 25,000 mtpa of LCE; An initial offtake term of ten years with an option to extend the term with an additional five years; Offtake to be priced on an agreed market price formula based upon the average quoted price in the quotational applying a discount. The CFA is subject to a standard set of conditions being achieved by Lake Resources including: finalization of the Definitive Feasibility Study; the performance of Lilac's demonstration plant; due diligence by WMC; and the LCE meeting the applicable product specifications.

The CFA becomes unconditional upon the satisfaction of said conditions precedent. The agreement strengthens Lake's long term shareholder base and adds to the equity component required for drawdown of debt facilities for project development.