Why did Lake Resources (LKE) shares crash?
LKE -16.54%: the lithium hopeful tumbled today after getting caught in a tussle with the operations company they’ve employed at their Kachi site following a disagreement about milestone cut-offs. Lilac will earn a stake of up to 25% of the project if they complete 1,000 hours of operations and 2,500kg of lithium carbonate. Lake believes these milestones need to be met by 30 September, while Lilac believes they have until the end of November with the dispute now going to mediation. While Lake has been well-bid thanks to a strong rally in lithium stocks, it’s had ongoing issues with delays to studies and turnover in key management positions as well as an attack from short sellers earlier in the year. Clearly, a few things bubbling away under the surface.
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