Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

More From The Market Herald

" Search Minerals (TSXV:SMY) announces $5M private placement

Search Minerals (SMY) is conducting a non-brokered private placement for gross proceeds of up to $5,000,000.

" DLP Resources (TSXV:DLP) updates proposed private placement

DLP Resources (DLP) intends to complete an offering of up to 2,000,000 FT units for gross proceeds of $500,000.

" Advance United Holdings (CSE:AUHI) launches the Advance United Marketplace

Advance United Holdings (AUHI) has introduced a platform for owners of mineral commodities to connect with developers and producers.

" Vision Lithium (TSXV:VLI) acquires lithium property in Quebec

Vision Lithium Inc. (VLI) has closed its acquisition of a 100 per cent undivided interest in 215 contiguous mining claims in Quebec.