Lithium Americas Corp. (TSX: LAC) (NYSE:
LAC) (“Lithium Americas” or the “Company”) is pleased to
announce that it has completed the previously announced transaction
with Ganfeng Lithium Co., Ltd. (together with its subsidiaries,
“
Ganfeng Lithium”) in respect of their joint
venture company, Minera Exar S.A. (“
Minera Exar”)
(the “
Transaction”). Minera Exar owns 100% of the
Caucharí-Olaroz lithium project
(“
Caucharí-Olaroz”) currently under development in
Jujuy, Argentina.
On closing, Ganfeng Lithium subscribed for new
shares of Minera Exar for cash consideration of US$16 million
increasing its interest from 50% to 51%, with Lithium Americas
owning the remaining 49%. In addition, Lithium Americas received
US$40 million 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 February 7,
2020.
“The Transaction with Ganfeng Lithium further
strengthens our long-term partnership in Argentina as we work
together to bring Caucharí-Olaroz into production,” commented Jon
Evans, President and CEO. “With an additional US$40 million in cash
on our balance sheet and over US$200 million in available capital
to fund our share of Caucharí-Olaroz, Lithium Americas remains in a
strong financial position as we advance both of our projects."
“Caucharí-Olaroz is approximately 50% complete
and represents one of the few large-scale lithium operations
currently in development globally. We are coordinating 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. The Company trades on
both the Toronto Stock Exchange and on the New York Stock Exchange,
under the ticker symbol “LAC”.
For further information contact:
Lithium Americas Corp.Investor
RelationsSuite 300 – 900 West Hastings StreetVancouver, BC, V6C
1E5Telephone: 778-656-5820Email:
ir@lithiumamericas.comWebsite: www.lithiumamericas.com
Forward-Looking Statements &
Information
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. All statements, other than
statements of historical fact, are forward-looking information.
Examples of forward-looking information in this news release
include, among other things, statements related to: development of
the Caucharí-Olaroz, including timing and budget, completion of
construction activities, anticipated productions, and results
thereof; the Company’s response to the COVID-19 outbreak, the
potential impact to the construction schedule, and the expected
timing for updates on its impact on such schedule; discussions with
vendors and freight forwarders, and results thereof; the expected
benefits from the February 2020 Ganfeng investment agreement;
capital expenditures and programs; estimates of the mineral
resources and reserves at its properties; development of mineral
resources and reserves; government regulation of mining operations
and treatment under governmental and taxation regimes; the timing
and amount of future production; currency exchange and interest
rates; the Company’s ability to raise capital; expected
expenditures to be made by the Company on its properties; the
timing, cost, quantity, capacity and product quality of production
of the Caucharí-Olaroz project, which is held and operated through
the Company’s joint venture with Ganfeng; successful operations of
the Ganfeng co-ownership structure; the Company’s share of the
expected capital expenditures for the construction of Stage 1 of
the Caucharí-Olaroz project; ability to achieve capital cost
efficiencies; and stability and inflation related to the Argentine
peso, whether the Argentine government implements additional
foreign exchange and capital controls, and the effect of current or
any additional regulations on the Company’s operations.
Forward-looking information is based upon a
number of factors and assumptions that, if untrue, could cause the
actual results, performances or achievements of the Company to be
materially different from future results, performances or
achievements expressed or implied by such information. Such
information reflects the Company’s current views with respect to
future events and is necessarily based upon a number of assumptions
that, while considered reasonable by the Company today, are
inherently subject to significant uncertainties and contingencies.
These assumptions include, among others, forecasted demand for
lithium products, including pricing thereof, the Company’s ability
to fund, advance and develop the Caucharí-Olaroz project and the
Thacker Pass project into production, including results therefrom
and timing thereof, the impacts of COVID-19 globally and in the
jurisdictions in which we operate, and on the availability and
movement of personnel, supplies and equipment, timing of regulatory
approvals and permits, and on third parties we are in a contractual
relationship with regarding the preparation of the DFS and with
respect to construction activities at the Caucharí-Olaroz project,
accuracy of mineral resources, including whether such mineral
resources can ever be converted into reserves, reliability of
technical data, accuracy of current budget and construction
estimates, that pending patents will be approved, ability to
achieve commercial production, general economic conditions,
maintenance of a positive business relationship with Ganfeng,
timely responses from governmental agencies responsible for
reviewing and considering the Company’s permitting activities, the
Company’s position in a competitive environment, and a stable and
supportive legislative, regulatory and community environment.
Forward-looking information also involve known
and unknown risks that may cause actual results to differ
materially, these risks include, among others, inherent risks in
development of capital intensive mineral projects (including as
co-owners), variations in mineral resources and mineral reserves,
global demand for lithium, recovery rates and lithium pricing,
risks associated with successfully securing adequate financing,
changes in project parameters and funding thereof, risks related to
growth of lithium markets and pricing for products thereof, changes
in legislation, governmental or community policy, political risk
associated with foreign operations, permitting risk, including
receipt of new permits and maintenance of existing permits, title
and access risk, cost overruns, unpredictable weather and
maintenance of natural resources, unanticipated delays,
intellectual property risks, currency and interest rate
fluctuations, operational risks, health and safety risks, and
general market and industry conditions. Additional risks,
assumptions and other factors are set out in the Company’s
management discussion analysis and most recent annual information
form, copies of which are available on SEDAR at www.sedar.com.
Although the Company has attempted to identify
important risks and assumptions, given the inherent uncertainties
in such forward-looking information, there may be other factors
that cause results to differ materially. Forward-looking
information is 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.
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