VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 18, 2016) - Lithium Americas Corp. (the "Company") (TSX:LAC)(OTCQX:LACDF) reports that 83,581,377 common shares, representing 28.63% of the total number of the Company's common shares issued and outstanding were voted at its Special Meeting held on April 15, 2016 (the "Meeting").
As more particularly described in the Company's management information circular dated March 15, 2016, the shareholders were asked to consider and, if deemed advisable, pass, with or without variation, an ordinary resolution (the "Resolution") to authorize the Company to issue all such common shares as may become issuable pursuant to the convertible loan agreement (the "Convertible Loan Agreement") between the Company and The Lind Partners ("Lind") dated April 30, 2015, including shares issuable on exercise of the common share purchase warrants issued to Lind, as well as upon any potential amendment to the Convertible Loan Agreement. A majority of the shareholders voted against the Resolution, therefore the Resolution did not pass.
Details of the voting are as follows:
Total shares voted in favour: 30,852,358 (36.91%)
Total shares voted against: 52,729,019 (63.09%)
As a consequence of the shareholder vote, the Company expects to settle payment of the loan with cash. The loan has a maturity date of April 30, 2017 and of the original US$3.5 million face value, approximately US$2 million has previously been settled by the issuance of common shares to Lind. The Company's current cash position is approximately US$16.5 million at corporate level and US$10 million in the joint venture subsidiary Minera Exar S.A.
About the Company
Lithium Americas is developing the Cauchari-Olaroz lithium project, located in Jujuy province, Argentina, and the Lithium Nevada project (formerly Kings Valley project) in Nevada, U.S.A, with the intent to become a major supplier of lithium products. In addition, Lithium Americas is a supplier of specialty drilling additives, Hectatone™ and other organoclay products for the oil and gas and other industries.
Forward-looking statements
Statements in this release that are forward-looking information are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in the company's periodic filings with Canadian securities regulators. When used in this document, the words such as "expect," "believe," "planned", "scheduled," "targeting" and similar expressions is forward-looking information. Information provided in this document is necessarily summarized and may not contain all available material information.
Statements in this release that constitute forward-looking statements or information include, but are not limited to the timing and amount of future settlement of the loan.
All such forward-looking information and statements are based on certain assumptions and analyses made by Lithium Americas management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading "Risks Factors" in the Lithium America's most recently filed MD&A. The Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.