Lithium Americas Corp T.LAC

RE:Green Technology Metals raising $50m; Lithium Americas buys

[Moemoney42]

Lithium explorer Green Technologies Metals was asking investors for $50 million on Wednesday morning, and already had commitment for about $US10 million ($14 million) from Lithium Americas which would become a substantial shareholder.

Street Talk. Louise Kennerley

The offer was priced at $1.05 per share, a 9.09 per cent discount to the last close, according to the term sheet.
It was to be split into two tranches: a $31.7 million tranche under the current placement capacity while the rest would need shareholder approval.

Potential investors were told Green Technology Metals had entered into a placement agreement with Lithium Americas Corporation, which had committed to taking up $US10 million ($14 million) of the placement.

It would mean Lithium Americas would own 5.3 per cent of the Green Technology Metals after the raise.

Lithium royalty

 

 

Lithium Americas is a Canada-headquartered miner with projects in Argentina and North America. It’s listed on both the Tokyo Stock Exchange and the New York Stock Exchange, with a $4 billion odd market capitalisation.

The agreement including a standstill that would stop Lithium Americas from building its stake to more than 10 per cent of Green Technology Metals (without consent) over the next 12 months.

The two have also signed a non-binding framework for to weigh a strategically located, integrated lithium business in North America. The term sheet said this would cover lithium processing and production value chain, right from spodumene processing to production of battery-grade lithium.

Green Technology Metals listed last year after a $24 million initial public offering run jointly by Canaccord Genuity and Bell Potter.

They were back as the joint lead managers on Wednesday’s placement. Bids were due 5pm Wednesday.

It had a $233 million market capitalisation before the raise.