- Lithium Americas Argentina (TSX:LAAC) has closed its previously announced agreement with a subsidiary of Ganfeng Lithium
- The agreement will see Ganfeng acquire US$70 million in newly issued shares of Proyecto Pastos Grandes S.A. (PGCo), a wholly owned Argentinian subsidiary holding the Pastos Grande Project
- This represents a 14.9 per cent interest in PGCo and Pastos Grandes
- Shares of Lithium Americas Argentina are up 1.75 per cent to C$3.49 as of 12:54 pm ET
Lithium Americas Argentina (TSX:LAAC) has closed its previously announced agreement with a subsidiary of Ganfeng Lithium.
In a news release, the company stated that the agreement will see Ganfeng acquire US$70 million in newly issued shares of Proyecto Pastos Grandes S.A. (PGCo), Lithium Americas Argentina’s wholly owned Argentinian subsidiary holding the Pastos Grande Project, and represents a 14.9 per cent interest in PGCo and Pastos Grandes.
“The completion of this Transaction is an important step forward for the combined efforts of Lithium Argentina and Ganfeng Lithium in Argentina emphasizing the collaboration and shared commitment of both companies to innovate and responsibly progress the global clean energy transition,” Sam Pigott, CEO of Lithium Americas, said in a statement. “Proceeds from the Transaction will be used to strengthen our balance sheet and reduce short-term at Caucharí-Olaroz and provide additional flexibility to support our future growth plans.”
Lithium Americas acquired Pastos Grandes in early 2022 through the acquisition of Millennial Lithium. The project is a lithium brine development adjacent to Ganfeng Lithium’s Pozuelos-Pastos Grandes project and sits 100 kilometres from the operating Caucharí-Olaroz project.
Lithium Americas Argentina is focused on developing lithium projects that support the lithium supply chain and the global transition to cleaner energy. The company owns a 44.8 per cent interest in the Cauchari-Olaroz project in Jujuy, Argentina.
Shares of Lithium Americas Argentina (TSX:LAAC) are up 1.75 per cent to C$3.49 as of 12:54 pm ET.
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