Lithium Americas Reports 2017 Financial and Operating Results
March 29 2018 - 8:49AM
Lithium Americas Corp. (TSX:LAC) (NYSE:LAC)
("Lithium Americas" or the "Company") has
announced its financial and operating results for the year ended
December 31, 2017.
This news release should be read in conjunction
with Lithium Americas’ audited consolidated financial statements
and management's discussion and analysis ("MD&A") for the year
ended December 31, 2017, which are available on Lithium Americas’
website, on SEDAR and on EDGAR.
“We have made a remarkable amount of progress in
2017 and so far in 2018,” said Tom Hodgson, CEO of Lithium
Americas. “Cauchari-Olaroz continues to move forward as planned
with pond construction started in early February and on track for
production in 2020. Lithium Nevada is progressing well towards
announcing the results of an updated preliminary feasibility study
by the end of June.”
HIGHLIGHTS
Project development and
operations
Cauchari-Olaroz:
- Development activities continue with the advancement of
detailed engineering, camp construction, design and supplies
purchases. Earth works, production, well-drilling and hydrological
testing are underway.
- Evaporation pond construction has begun, and filling of the
ponds is planned to begin in the second half of the year.
- Engineering for the infrastructure is close to 50% completed
and scheduled to be completed in the first half of 2018, followed
by plant design later this year.
- In 2017, Minera Exar SA (“Minera Exar”) started construction
activities, with earth works, roads and platforms for the
wellfields well underway. There are currently more than 400 people
working in Argentina, including direct employees and contractors. A
camp expansion that will accommodate approximately 460 personnel
during the construction phase of the project is well-advanced, with
the first half already commissioned, and the remaining half
scheduled to be commissioned in early April 2018.
- Early procurement contracts have been signed and bids have been
received for the critical items, in accordance with the project
schedule in order to be able to have vendor data to progress
engineering. Engineering for the gas pipeline is underway and
should be completed during second quarter 2018. Proposals for
engineering, procurement and construction of gas pipelines and
solar generation facilities have been requested and are expected to
be received in the first half of 2018.
- Minera Exar’s board has recently reviewed the progress of the
Cauchari-Olaroz Project development. As a result of additional work
required on wellfield optimization and an updated pond
construction/filling schedule, it has updated the targeted
development timeline, with production expected to commence in
2020.
Lithium Nevada:
- Assembled an experienced technical team with backgrounds in
exploration, permitting, mining, and lithium processing.
- Advancing a scalable process to extract lithium products from
lithium-bearing claystone.
- Engaged the Advisian WorleyParsons Group (“WorleyParsons”) to
complete a NI 43-101 Preliminary Feasibility Study (“PFS”) by the
end of the second quarter of 2018.
RheoMinerals:
- Has experienced growth in sales to oilfield service companies
since the start of commercial operations at Fernley plant in Nevada
in April 2016. Sales for the year ended December 31, 2017 reached
US$4.3 million, compared to US$1.2 million in 2016.
- Received US$0.5 million in progress and expense reimbursement
payments under a Technical Assistance and Royalty Agreement with
Delmon Co. Ltd. (“Delmon”) Construction of a plant by Delmon in
Saudi Arabia as contemplated under the agreement is advancing and
expected to be completed in 2018. The Company is entitled to net
profit and gross profit royalties from future production of the
plant.
Finance
- As at December 31, 2017, the Company had US$55.4 million in
cash and cash equivalents.
- In June 2017, the Company entered into an investment agreement
with GFL International Co., Ltd., a wholly-owned subsidiary of
Jiangxi Ganfeng Lithium Co., Ltd. (“Ganfeng Lithium”). Pursuant to
the investment agreement, Ganfeng Lithium agreed to provide Lithium
Americas with an aggregate of approximately US$172 million in
equity and debt financing.
- In July 2017, the Company entered into an investment agreement
with BCP Innovation Pte Ltd., a wholly-owned subsidiary of Bangchak
Corporation Public Company Limited (“Bangchak”). Pursuant to the
investment agreement, Bangchak agreed to provide Lithium Americas
with an aggregate of approximately US$113 million in equity and
debt financing.
- As a result of the completion of the Ganfeng Lithium and
Bangchak investment agreements, the Company has US$205 million in
undrawn debt facilities to finance its share of capital
expenditures with respect to the Minera Exar joint venture.
Corporate
- In May 2017, Gabriel Rubacha was appointed President of South
American Operations. Mr. Rubacha is a director of Lithium Americas
and was previously the Commercial Director of Techint Engineering
and Construction S.A. In August 2017, the Company appointed Alexi
Zawadzki as the President of North American Operations. Mr.
Zawadzki has over 20 years of experience developing and
constructing mining and energy projects across North and South
America, in addition to the management of technical teams and
business units.
- In January 2018, the Company announced that it had received
approval for the listing of its Common Shares on the NYSE. The
Common Shares opened for trading on the NYSE on January 25, 2018.
In connection with the U.S. listing, the Company had effected a
consolidation of its outstanding Common Shares on the basis of one
new common share for every five outstanding Common Shares,
effective November 8, 2017.
Qualified Person:
The scientific and technical information in this
news release has been reviewed and approved by Dr. Rene LeBlanc, a
Qualified Person for purposes of NI 43-101. Dr. LeBlanc is Senior
Process Development Manager at Lithium Nevada Corp., a wholly-owned
subsidiary of the Company. Information on the Company’s data
verification and QA / QC procedures is contained in Lithium
Americas’ most recently filed annual information form, and the
current technical reports for the Cauchari-Olaroz project and
the Lithium Nevada project, respectively, all available at
www.sedar.com.
About Lithium Americas
Lithium Americas, together with SQM, is
developing the Cauchari-Olaroz lithium project, located in Jujuy,
Argentina, through its 50% interest in Minera Exar. In addition,
Lithium Americas owns 100% of the Lithium Nevada project (formerly
Kings Valley project), and RheoMinerals Inc., a supplier of
rheology modifiers for oil-based drilling fluids, coatings, and
specialty chemicals. The Company trades on both the Toronto Stock
Exchange and on the New York Stock Exchange, under the ticker
symbol “LAC”.
Forward-looking statements
This news release contains “forward-looking
information” and “forward-looking statements” (which we refer to
collectively as forward-looking information) under the provisions
of applicable securities legislation. Such forward-looking
information is subject to various risks and uncertainties.
Forward-looking information in this news release includes, but is
not limited to, statements with respect to pond construction, the
achievement of other technical milestones and commencement of
production at Cauchari-Olaroz, the timing of completion of a PFS
for Lithium Nevada, and, in respect of RheoMinerals, the completion
of a plant in Saudi Arabia and the receipt of any royalty funds in
connection therewith. Forward looking information is subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking information, including, but not
limited to, risks and uncertainties related to whether there will
ever be production at the Company’s mineral properties, geological,
technical, drilling or processing problems, environmental
liabilities and risks inherent in mineral extraction operations,
lack of availability of additional financing, and obtaining
regulatory approvals in a timely manner, or at all. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are made
as of the date hereof and the Company does not intend, and
expressly disclaims any obligation to, update or revise the
forward-looking information contained in this news release, except
as required by law. Accordingly, readers are cautioned not to place
undue reliance on forward-looking information.
For further information contact:
Lithium Americas Corp.
Investor Relations
Suite 1100 – 355 Burrard Street
Vancouver, BC, V6C 2G8
Telephone: 778-656-5820
Email: ir@lithiumamericas.com
Website: www.lithiumamericas.com
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