The Globe and Mail reports in its Thursday, March 7, edition that another deep-pocketed China-based buyer is attempting to invest in a Canadian critical-minerals company, even as Ottawa fires a warning shot that it is monitoring such deals closely and is prepared to intervene. The Globe's Niall McGee writes that on Tuesday, Lithium Americas Argentina (Lithium Argentina) said it had attracted a $70-million (U.S.) investment from China-based Ganfeng Lithium, which would see it take a 15-per-cent interest in its Pastos Grandes project. Ganfeng has the right to acquire up to 50 per cent of the Argentine lithium project for an additional $330-million (U.S.) in the event of a change in control of Lithium Argentina. This is the second time in the past few years that a China-based giant has attempted to grab control of Pastos Grandes. Lithium Argentina said in its Tuesday release that the Ganfeng deal is subject to a review by China but did not mention that it would be subject to a probe by Ottawa. The federal government under the Investment Canada Act has the power to review and ultimately block foreign investments into Canadian companies, if it believes it to be a threat to national security.
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