- Lithium Americas (LAC) has signed a definitive agreement to acquire the outstanding shares of Millennial Lithium (ML)
- The company will purchase Millennial Lithium in a combination of cash and shares for a total of approximately $400 million
- Millennial’s board of directors has unanimously approved the transaction
- Lithium Americas is a development-stage company with projects in Argentina and the United States
- Shares in Lithium Americas Corp. (LAC) are up 3.90 per cent, trading at $41.52 per share
- Millennial Lithium Corp. (ML) is down 2.12 per cent, trading at $4.62 per share
Lithium Americas (LAC) has signed a definitive agreement to acquire the outstanding shares of Millennial Lithium (ML).
The company will purchase the shares for $4.70 each, payable in a combination of cash and shares for a total of approximately $400 million.
Based on Lithium Americas’ closing price on November 16, 2021, this consideration would result in Millennial shareholders owning approximately 9.1 per cent of the company.
Millennial Lithium’s assets include the Pastos Grandes Lithium Project and the Cauchari East Lithium Project.
The addition of Millennial’s Pastos Grandes lithium brine project in Salta province provides an attractive regional growth opportunity for Lithium Americas.
Jonathan Evans, President and CEO of Lithium Americas, commented on the transaction.
“This transaction is a rare opportunity to add a complementary lithium brine project and leverage our expertise developing Caucharí-Olaroz as the largest new lithium carbonate operation to come online in over 20 years,” he said.
“We are confident Pastos Grandes can provide significant value for all shareholders,” added Mr. Evans, “as we execute on our growth strategy in the region over the coming years.”
Millennial’s board of directors has unanimously approved the transaction and recommends that shareholders also vote in favour of the transaction.
“Lithium Americas brings significant technical expertise and financial flexibility de-risking the development of Pastos Grandes and generating further upside for Millennial Shareholders,” said Millennial president and CEO Farhad Abasov.
Lithium Americas is a development-stage company with projects in Argentina and the United States.
Shares in Lithium Americas Corp. (LAC) are up 3.90 per cent, trading at $41.52 per share.
Millennial Lithium Corp. (ML) is down 2.12 per cent, trading at $4.62 per share as of 2:59 pm ET.
