Mr. Jon Evans reports
LITHIUM AMERICAS AND GANFENG LITHIUM COMPLETE THE CAUCHARA -OLAROZ JV TRANSACTION
Lithium Americas Corp. has completed the previously announced transaction with Ganfeng Lithium Co. Ltd. in respect of its joint venture company, Minera Exar SA. Minera Exar owns 100 per cent of the Cauchari-Olaroz lithium project currently under development in Jujuy, Argentina.
On closing, Ganfeng Lithium subscribed for new shares of Minera Exar for cash consideration of $16-million (U.S.), increasing its interest from 50 per cent to 51 per cent, with Lithium Americas owning the remaining 49 per cent. In addition, Lithium Americas received $40-million (U.S.) in cash from the proceeds of a non-interest-bearing loan from Ganfeng Lithium. For more details on the transaction, please refer to the company's press release dated Feb. 7, 2020.
"The transaction with Ganfeng Lithium further strengthens our long-term partnership in Argentina as we work together to bring Cauchari-Olaroz into production," commented Jon Evans, president and chief executive officer. "With an additional $40-million (U.S.) in cash on our balance sheet and over $200-million (U.S.) in available capital to fund our share of Cauchari-Olaroz, Lithium Americas remains in a strong financial position as we advance both of our projects.
"Cauchari-Olaroz is approximately 50 per cent complete and represents one of the few large-scale lithium operations currently in development globally. We are co-ordinating closely with the Province of Jujuy to ensure we operate responsibly and safely as we gradually restart construction activities. The health and safety of our workers and the communities close to the project is our top priority."
About Lithium Americas
Lithium Americas is a development-stage company with projects in Argentina and Nevada.
We seek Safe Harbor.
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