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Be the first with the news that moves the market- Lithium Americas Corp. (LAC) has agreed to sell 1 per cent of its shares in the joint venture Minera Exar S.A.
- The shares are being purchased by Ganfeng Lithium Co. Ltd. for C$21.3 million
- Ganfeng Lithium and Lithium Americas previously had a 50-50 split in the joint venture
- Minera Exar S.A. was created to develop the Caucharí-Olaroz lithium project in Argentina
- The project is currently under construction
- It is scheduled to start production in early 2021, with a predicted out-put of 40,000 tonnes per year of lithium
- Lithium Americas Corp. (TSX: LAC) is up 2.23 per cent, with shares currently trading at C$5.84
Lithium Americas announced today that it has agreed to sell a portion of its stock in the joint venture company Minera Exar S.A to its venture partner, Ganfeng Lithium.
The joint venture company was set up between Lithium Americas and Ganfeng Lithium to develop the Caucharí-Olaroz lithium project in Argentina.
The exchange is valued at approximately C$21.3 million.
Ganfeng Lithium has increased its holdings in the joint venture from a 50-50 split to 51 per cent, with Lithium Americas owning the other 49 per cent.
“The Transaction with Ganfeng Lithium further strengthens our balance sheet while ensuring Caucharí-Olaroz construction continues to advance as planned,” commented Jon Evans, the Company’s President and CEO.
Mr Evans went on to say that the funds from this transaction will go toward developing their U.S.-based project, Thacker Pass.
Thacker Pass has the largest known lithium deposit in the U.S. The funding will help Lithium Americas move the project closer to construction.
Construction at the Caucharí-Olaroz lithium project has begun and currently employs over 900 staff. Lithium will be extracted from the large bodies of lithium-laden brine on the property.
The predicted output of the project is 40,000 tonnes of lithium per year.
Over the next year the joint venture is planning on investing a further C$400 million into the property’s development.
The mine predicted to commence production early next year.
Lithium Americas Corp. (TSX: LAC) is up 2.23 per cent, with shares currently trading at C$5.84.
