LLKKF - Lake Resources' lithium process slammed by short seller report

Lake Resources ( OTCQB:LLKKF ) closed -14.1% in Monday's trading after a report from J Capital Research said the company's plan to produce lithium in Argentina is based on a process that likely does not work .

Lake's ( OTCQB:LLKKF ) process depends on direct lithium extraction technology developed by Lilac Solutions Inc., but short-seller J Capital says there is no evidence that the technology works at scale and if so at what cost.

"Lake has a track record of failing to deliver on promises," according to the report, which cites Lake's promise that a Lilac DLE pilot plant would be delivered in 2019; it has not been delivered and a feasibility study promised for 2020 has not been published, J Capital says.

Lilac's technology uses ceramic beads to attract lithium in batch cycles, then a water-and-acid mixture is used to wash off the metal; J Capital believes the high cost of the beads would make Lake's ( OTCQB:LLKKF ) project uneconomical and that the process would leave behind "toxic waste."

The report also alleges Lake ( OTCQB:LLKKF ) has issued stock options to analysts who published favorable reports.

Lake ( OTCQB:LLKKF ) shares surged in April after Ford Motor signed a preliminary lithium supply deal with the company .

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