Lithium developer Lake Resources has announced the sale of three non-core lithium brine assets in Argentina to Austroid for A$13.6m ($9m).

These non-core assets are the Paso de Jama, Olaroz and Cauchari tenements in Jujuy Province.

Funds from the sale are earmarked for supporting the company's financial runway and furthering the development of its flagship Kachi Project.

The Kachi Project, situated in Catamarca Province, is recognised as one of Argentina's largest direct lithium extraction (DLE) brine resources.

This transaction will provide Lake with additional, non-dilutive liquidity.

Completion of the transaction is expected by the end of 2024, contingent upon standard closing conditions.

As of 30 September 2024, Lake Resources had cash reserves of A$17.5m. The company’s proforma cash position would be A$31.1m after the sale.

Lake Resources CEO David Dickson said: “Given that Kachi is a premier tier-one asset with a total resource estimate exceeding 10.6 million tonnes of lithium carbonate equivalent and strong economics, the company has decided to focus all of its resources on the project.

“We have more than enough brine at Kachi for a 25-year project with potential for expansion.

“Lake remains focused on securing high-value strategic partnerships and offtake agreements to bolster Kachi's development.”

In March this year, Lake Resources announced a series of cost-cutting measures including staff reductions in non-core positions.

The company is reducing around 50% of its non-essential operational and administrative roles worldwide. It is also consolidating other general and administrative costs.