Subscribe
Be the first with the news that moves the market- Lithium Americas Corp. (LAC) has closed the initial tranche of a US$650 million investment by General Motors Co
- The first tranche of the investment is worth $320 million
- Proceeds from GM’s investment are to be used to accelerate the development of the company’s Thacker Pass Lithium Project located in Humboldt County, Nevada
- Lithium Americas is focused on advancing lithium projects in Argentina and the United States to production
- Lithium Americas Corp. opened trading at C$33.97 per share
Lithium Americas Corp. (LAC) has closed the initial tranche of its $650 million investment by General Motors for proceeds of US$320 million.
As previously disclosed, GM is making a $650 million equity investment in the company in two tranches. In connection with this closing, GM has purchased 15 million common shares of the company at a price of $21.34 per share for gross proceeds of $320 million.
GM’s investment will be used to accelerate the development of Lithium Americas’ Thacker Pass Lithium Project in Nevada, the largest known lithium resource in the United States.
“The beginning of construction at Thacker Pass is imminent following last week’s favourable ruling on the Record of Decision and the closing of GM’s initial investment,” said Jonathan Evans, President and CEO of Lithium Americas.
“GM’s investment is a landmark transaction that will help put millions of drivers into electric vehicles while creating jobs and a strong and secure U.S. supply chain for EV raw materials,” he added.
GM is now Lithium Americas’ largest shareholder and offtake partner. Lithium Americas continues to pursue a commitment from the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing Program, which will help scale lithium production at Thacker Pass to support the production of nearly one million EVs annually.
The company expects to close the second and final tranche following the company’s contemplated separation of its U.S. and Argentine businesses in the second half of 2023.
For the final $330 million investment, GM has agreed to subscribe for shares in the U.S. business based on the then-market price on the date of subscription, subject to a cap of $27.74 per share (adjusted for the separation).
Lithium Americas is focused on advancing lithium projects in Argentina and the United States to production.
Lithium Americas Corp. (LAC) opened trading at C$33.97 per share.
