Lake Resources N.L. (ASX: LKE; OTCQX: LLKKF) has obtained environmental approvals for its Kachi lithium brine project in Argentina’s Catamarca Province, transitioning the site now to its front-end engineering design phase (FEED).
The Catamarca ministry of mining issued the Environmental Impact Declaration (Declaración de Impacto Ambiental or “DIA”) for Kachi after the statutory public consultation phase and interagency evaluations were completed.
“Having our DIA elevates our position in ongoing commercial negotiations with potential strategic partners, off-takers, and export credit agencies as we work toward commercial execution,” Lake Resources CEO David Dickson said in a news release.
Kachi is now one of the few fully permitted, large-scale, independent greenfield lithium brine projects globally to reach this stage.
Shares in Lake Resources were up 10.53% to A$0.04 ($0.02) apiece by markets close in Sydney, valuing the company at A$107.7 million ($75 million).
The DIA
As the primary environmental permit granted by provincial authorities, the DIA confirms that Kachi’s engineering design, resource management plan, and sustainability profile comply with the environmental and social standards of Catamarca Province and Argentina.
It also adopted a 200m surficial exclusion zone surrounding the lagoon shoreline to define the spatial and operational boundary between project activities and the lagoon ecosystem, and established obligations that are expected to be completed before commercial operations start.
With the approval of the DIA and following the company’s social responsibilities, Lake Resources also committed to a contribution of $1 million to the Mining Royalty Trust Fund of Catamarca (Fondo Fiduciario de Regalias Mineras de la Provincia de Catamarca).
The contribution will be paid in installments from October 2026 through June 2027, and it’s expected to support infrastructure projects that will benefit local communities in the region.
FEED phase
With the DIA secured, Lake Resources is advancing Kachi into the FEED phase, which will use previous studies and engineering work done alongside Hatch and Lilac Solution to develop the site.
In this phase, the company will review and refine engineering solutions for the first phase of the project, secure suppliers and equipment, define construction logistics and operational risk mitigation plans for the project.
“This transitions Lake from a permitting focus to detailed project delivery and financing. It moves Kachi into fully permitted status, making the project shovel-ready and validating the world-class scientific foundation of Lilac’s Direct Lithium Extraction model,” Dickson said.
It will also be time for Lake Resources to explore and secure financial support, by providing detailed technical documentation to financial advisors, export credit agencies, and prospective off-takers and equity partners of the 25,000 tonnes per annum lithium carbonate equivalent commercial facility.
