Lithium Americas Announces Closing of Transaction with Ganfeng Lithium and SQM
October 31 2018 - 7:23PM
Lithium Americas Corp. (TSX: LAC; NYSE: LAC) (“Lithium
Americas”, “LAC” or the “Company”) is pleased to announce
the completion of a series of transactions with subsidiaries of
Jiangxi Ganfeng Lithium Co., Ltd. (“
Ganfeng
Lithium”) and Sociedad Química y Minera de Chile S.A.
(“
SQM”) with respect to the Cauchari-Olaroz
lithium project in Jujuy, Argentina
(“
Cauchari-Olaroz”), previously announced on
August 13, 2018 (together, the “
Transaction).
Pursuant to the Transaction, Ganfeng Lithium has
acquired a 37.5% interest in Minera Exar S.A. (“Minera
Exar”), the holding company for Cauchari-Olaroz, from SQM.
Lithium Americas holds the remaining 62.5% interest. In
connection with the Transaction, Ganfeng Lithium has provided
Lithium Americas with a US$100 million limited recourse,
subordinated loan facility to fully fund Lithium Americas’
increased share of Caucharí-Olaroz’ capital expenditures.
Tom Hodgson, CEO of Lithium Americas, commented,
“We would like to thank SQM for helping close the Transaction on
schedule and for their continued support during the transition
period. We are very pleased with the recent progress at site,
including the start of filling the first pond in October, and
remain on track to commence lithium carbonate production in 2020.
Following the close of the Transaction, Lithium Americas remains
well capitalized with approximately US$300 million in available
capital and over US$45 million in cash on our balance sheet.”
Wang Xiaoshen, Vice Chairman of Ganfeng Lithium,
commented, “Advancing Cauchari-Olaroz to production is one of our
top priorities. With the Transaction closed and construction
activity accelerating, we look to leverage our technical and
project execution experience processing concentrated brine into
high-quality lithium products to the benefit of Minera Exar and the
Province of Jujuy.”
About Lithium
Americas:
Lithium Americas, together with Ganfeng Lithium,
is developing Caucharí-Olaroz, under construction in Jujuy,
Argentina through its 62.5% interest in Minera Exar. In addition,
Lithium Americas owns 100% of the Thacker Pass lithium project
located in Nevada, the largest known lithium deposit in the United
States. 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 1150 – 355 Burrard StreetVancouver, BC, V6C
2G8Telephone: 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. 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: (i) the timing and
results of the development plan and ongoing development at the
Caucharí-Olaroz project; (ii) Lithium Americas’ ability to fund the
Caucharí-Olaroz project; and (iii) anticipated timing of production
at the Project. 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 relating to changes in Project parameters as plans continue
to be redefined, including the possibility that mining operations
may not commence at the Project, risks relating to variations in
mineral resources and mineral reserves, risks relating to the
ability to access infrastructure, risks relating to changes in the
price of, or worldwide demand for, battery-grade lithium carbonate,
sulfuric acid or other commodities, risks relating to increased
competition in the market for battery-grade lithium carbonate and
related products, risks relating to global financial conditions,
reliance on key personnel, operational risks inherent in the
conduct of mining activities, increases in capital or operating
costs and the risk of delays or increased costs that may be
encountered during the development and construction process,
regulatory risks, including risks relating to the acquisition of
necessary permits and licenses, financing risks, including the risk
that funding required for development and construction activities
may not be available on satisfactory terms or at all, environmental
risks, and the additional risks identified in the “Risk Factors”
section of Lithium Americas’ annual information form and other
reports and filings filed with applicable securities regulators.
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.
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