Lithium Americas Corp. (NYSE:
LAC) (TSX:
LAC) (“
Lithium
Americas” or the “
Company”) is pleased to
provide a corporate update regarding the status of the Company and
its projects. In addition, the Company has established an
at-the-market equity program (the “ATM Program”) that allows the
Company to issue up to US$100 million (or its Canadian dollar
equivalent) of common shares (the “Common Shares”) from treasury to
the public from time to time, at the Company’s discretion.
“With over 60% of the capital costs spent and
enhanced COVID-19 health and safety protocols in place, we remain
fully-funded to advance Caucharí-Olaroz to production,” said Jon
Evans, President and CEO. “In Nevada, the permitting process
continues to progress as planned with the public comment period
complete on the Draft EIS and local support with the recently
approved tax abatements from the Governor’s Office of Economic
Development. Finally, the Company has decided to implement an ATM
Program to strengthen our position as we advance discussions with
potential partners and customers at Thacker Pass.”
Caucharí-Olaroz
Construction activities at the Caucharí-Olaroz
lithium brine project
(“Caucharí-Olaroz”) in Jujuy,
Argentina are underway with enhanced COVID-19 protocols.
Progress continues at site with focus on the
carbonate plant civil works and the lime plant construction. All
critical equipment remains on track to be delivered by the end of
2020. The Company continues to assess the impact of COVID-19 on the
construction schedule. Based on the current remobilization plan,
which follows health and safety guidelines requiring a
significantly reduced workforce at site, the Company expects
construction to be complete by the end of 2021 with production in
early 2022.
Capital costs remain unchanged at US$565
million, on a 100% basis, including the contingency. As of
September 30, 2020, over 60% of the capital costs have been spent
with over 80% committed. In addition, the Company recently
completed a detailed review to confirm operating cost assumptions
based on the 2019 feasibility study estimates remain less than
US$3,600/t of battery-quality lithium carbonate.
Thacker Pass
Permitting continues to advance as planned at
the Thacker Pass lithium clay project (“Thacker
Pass”) in Nevada, USA with all major permits expected to
be received by the end of Q1 2021. The U.S. Bureau of Land
Management (“BLM”) recently completed the 45-day public comment
period on the Draft Environmental Impact Statement (“EIS”) as
published by the BLM in Q3 2020. The BLM is in the process of
incorporating public comments into the Final EIS which will form
the basis of the Record of Decision (“ROD”).
In September, the Nevada Governor’s Office of
Economic Development unanimously approved tax abatements for
Thacker Pass which are expected for the first phase construction
period. The tax abatements total US$9 million, including partial
sales, property and payroll tax abatements.
The Company continues to explore financing
options for the construction of Thacker Pass, including the
possibility of a joint venture partner. Based on discussions with
potential customers and joint venture partners, the Company is
assessing changes to the parameters of its feasibility study to
target a higher production capacity than the 20,000 tonnes per
annum (“tpa”) of lithium carbonate equivalent and a revised product
mix than previously considered. As a result, the scheduled timing
for completion of the feasibility study will be adjusted once the
Company has determined the targeted initial capacity and product
mix that more accurately reflects market needs.
Corporate
As of September 30, 2020, the Company had US$54
million in cash in addition to US$202 million in capital available
from credit and loan facilities to fund the Company’s share of
Caucharí-Olaroz. The Company remains fully-funded to advance
Caucharí-Olaroz to production and expects to have excess liquidity
available under its credit facilities.
ATM Program
The Company has established an ATM Program that
allows the Company to issue up to US$100 million (or its Canadian
dollar equivalent) of Common Shares from treasury to the public
from time to time, at the Company’s discretion. Any Common Shares
sold through the ATM Program will be sold through the Toronto Stock
Exchange (the “TSX”), the New York Stock Exchange (the “NYSE”) or
any other “marketplace” as defined under applicable securities
laws, at the prevailing market price at the time of sale. Sales
under the ATM Program will be commenced at the Company’s
discretion, and the net proceeds of any sales of Common Shares
under the ATM Program, if any, will be used for general corporate
and working capital purposes.
Distributions of the Common Shares through the
ATM Program will be made pursuant to the terms of an open market
sale agreement (the “Distribution Agreement”) among the Company and
Jefferies LLC, as lead U.S. agent, and National Bank Financial
Inc., as lead Canadian agent, and Jefferies Securities, Inc.,
National Bank of Canada Financial Inc., Stifel, Nicolaus &
Company, Incorporated, Stifel Nicolaus Canada Inc., Cormark
Securities (USA) Ltd., Cormark Securities Inc., BMO Capital Markets
Corp., BMO Nesbitt Burns Inc., Canaccord Genuity LLC and Canaccord
Genuity Corp. (collectively, the “Agents”).
The volume and timing of distributions under the
ATM Program, if any, will be determined at the Company's sole
discretion. The Company is not obligated to make any sales of
Common Shares under the ATM Program. The ATM Program will be
effective until the earlier of the issuance and sale of all of the
Common Shares issuable pursuant to the ATM Program and November 19,
2022, unless terminated prior to such date by the Company or the
Agents.
The ATM Program is being established pursuant to
a prospectus supplement dated October 20, 2020 (the “Canadian
Prospectus Supplement”) to the Company's Canadian base shelf
prospectus dated October 19, 2020 (the “Canadian Base Prospectus”)
filed with the securities commissions in each of the provinces and
territories of Canada and pursuant to a prospectus supplement dated
October 20, 2020 (the “U.S. Prospectus Supplement”) to the
Company's U.S. base prospectus dated October 19, 2020 (the “U.S.
Base Prospectus”) included in its registration statement on Form
F-10 (the “Registration Statement”) and filed with the U.S.
Securities and Exchange Commission (the “SEC”). The Canadian
Prospectus Supplement and the Canadian Base Prospectus may be
downloaded from SEDAR at www.sedar.com, and the U.S. Prospectus
Supplement, the U.S. Base Prospectus and the Registration Statement
are accessible via EDGAR on the SEC website at www.sec.gov.
Alternatively, the lead Canadian agent will send copies of such
documents to Canadian investors upon request by contacting the lead
Canadian agent at NBF Syndication, 130 King Street West, 4th Floor
Podium, Toronto, Ontario, M5X 1J9, by email at
ECM-Origination@nbc.ca or by telephone at (416) 869-6534 and the
lead U.S. agent will send copies of such documents to United States
investors upon request by contacting the lead U.S. agent at Equity
Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New
York NY 10022, by email at Prospectus_Department@Jefferies.com or
by telephone at (877) 821-7388. The Distribution Agreement may be
downloaded from SEDAR at www.sedar.com and is also accessible via
EDGAR on the SEC website at www.sec.gov.
The ATM Program is being launched pursuant to
the Canadian Base Prospectus and its corresponding filing with the
SEC of the U.S. Base Prospectus and Registration Statement. Such
filings qualify the Company to offer common shares, preferred
shares, warrants, subscription receipts, debt securities and units,
or any combination thereof, having an aggregate offering price of
up to US$500,000,000 over the course of the next 25 months, with
further details for any particular offering to be established in a
prospectus supplement filed with the securities commissions in each
of the provinces and territories of Canada and the SEC at the time
of such offering.
This news release does not constitute an offer
to sell or the solicitation of an offer to buy securities, nor will
there be any sale of the securities, in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
Technical Report and
Qualified Person
On October 19, 2020, the Company filed an
updated National Instrument 43-101 Technical Report titled,
“Updated Feasibility Study and Mineral Reserve Estimation to
Support 40,000 tpa Lithium Carbonate Production at the
Cauchari-Olaroz Salars, Jujuy Province, Argentina” (the "Technical
Report"). Capital expenditures remained unchanged at US$565
million, with US$304 million already spent as at June 30, 2020 and
excluded from the net present value (“NPV”). Operating costs were
updated to US$3,579 per tonne of battery-quality lithium carbonate
from US$3,576 per tonne previously. The Technical Report resulted
in after-tax NPV of US$1.5 billion at 10% discount rate and
US$12,000/tonne long-term lithium carbonate price. Sensitivity
analysis demonstrates after-tax NPV of US$518 million at 50% lower
lithium carbonate prices and US$3.4 billion at 50% higher
prices.
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 by virtue of his
experience, education and professional association. Dr. LeBlanc is
the Chief Technical Officer of the Company. Information on the
Company’s data verification and QA / QC procedures is contained in
Lithium Americas’ current technical reports for Caucharí-Olaroz and
Thacker Pass, available at www.sedar.com and www.sec.gov.
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:
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: the expected
efficacy of health and safety protocols established for the
Cauchari-Olaroz project, the expected time frame to complete
construction and delivery of equipment for the project, any
anticipated change to the initial production capacity and product
mix for the Thacker Pass project and the potential for a joint
venture partner to finance the project, the Company’s ability to
fully fund any of its projects, the expected sale of Common Shares
under and the completion of the ATM Program, the price, volume and
timing of sale of Common Shares under the ATM Program, the
anticipated use of proceeds from any offering made under the
Company’s base shelf prospectus and Registration Statement, and any
offerings to be conducted thereunder including the ATM Program, and
the anticipated benefits and impacts of the ATM Program.
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, those set out in the final base shelf
prospectus, prospectus supplement and Registration Statement, as
amended, and documents incorporated or deemed to be incorporated by
reference therein, and the ability to successfully complete one or
more offerings thereunder including the ATM Program, and any
anticipated use of proceeds in connection therewith, along with
obtaining required regulatory approvals, lithium market conditions
and pricing, 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 definitive feasibility study for
the Thacker Pass project 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 position in a competitive
environment, and a stable and supportive legislative, regulatory
and community environment, and general economic and market
conditions.
Forward-looking information also involve known
and unknown risks that may cause actual results to differ
materially from those presented in the forward-looking information.
These risks include, among others, the ability of the Company to
successfully close a financing, including the ATM Program, and
those risks identified in the final base shelf prospectus,
prospectus supplement and Registration Statement, as amended, and
the documents incorporated or deemed to be incorporated by
reference therein. Additional risks, assumptions and other factors
are set out in the Company’s management discussion analysis, most
recent annual information form and annual report on Form 40F,
copies of which are available on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov.
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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