• Lithium Americas (LAC) has entered into an agreement to acquire 42,857,143 subscription receipts of Arena Minerals (AN) for C$6.0 million
  • The investment is part of a C$10 million non-brokered private placement of subscription receipts of Arena Minerals
  • The proceeds of the offering will be allocated primarily to the acquisition of the Sal de la Puna lithium brine project
  • Arena Minerals Inc. (AN) is an exploration-stage lithium company
  • Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States
  • Arena Minerals Inc. (AN) is up 18.52 per cent, trading at C$0.16 per share at 12:20 pm ET
  • Lithium Americas Corp. (LAC) is up 10.48 per cent, trading at C$19.72 per share at 12:20 pm ET

Lithium Americas (LAC) has entered into an agreement to acquire 42,857,143 subscription receipts of Arena Minerals (AN) for C$6.0 million.

The ownership stake in Arena Minerals will provide Lithium Americas future optionality to advance exploration in Argentina in proximity to the Caucharí-Olaroz lithium project, which is being jointly developed by Arena Minerals and Ganfeng Lithium Co. Ltd. 

“We look forward to working with Arena Minerals to support the pursuit of resource exploration opportunities in Argentina,” commented Jon Evans, President and CEO.

“This investment will allow Lithium Americas to advance our long-term resource development plans, while maintaining our team’s focus on execution at Caucharí-Olaroz and the Thacker Pass project.”

The investment is part of a C$10 million non-brokered private placement of subscription receipts of Arena Minerals.

The proceeds of the offering will be applied to the acquisition of the Sal de la Puna lithium brine project, exploration and development expenditures on the Company’s lithium assets and for general corporate purposes.

Lithium Americas currently does not hold any securities of Arena Minerals. On closing, the company will own approximately 12.9 per cent of the issued and outstanding shares of Arena Minerals.

Pursuant to the agreement, Lithium Americas has the right to participate in future Arena Minerals financings to maintain its pro-rata ownership interest in Arena Minerals; and to appoint a nominee to the Arena Minerals board of directors.

These rights are conditioned on Lithium Americas maintaining an ownership interest in Arena Minerals of 7.5% and 10.0% of Arena Minerals’ share capital, respectively.

Upon closing, each subscription receipt will be exchanged for one common share of Arena Minerals, and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share of Arena Minerals at C$0.25 for a period of 24 months from the date of issuance. 

Arena Minerals Inc. (AN) is an exploration-stage lithium company focused on developing brine resources in Argentina. 

Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States. 

Arena Minerals Inc. (AN) is up 18.52 per cent, trading at C$0.16 per share at 12:20 pm ET.

Lithium Americas Corp. (LAC) is up 10.48 per cent, trading at C$19.72 per share at 12:20 pm ET.

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