Lithium Americas Announces US$10 Million Strategic Equity Investment in Green Technology Metals
April 28 2022 - 6:59AM
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium
Americas" or the "Company") is pleased to announce that it
has entered into an agreement to acquire shares of
Green
Technology Metals Ltd. (ASX: GT1) (“GT1”)
in a share placement for total consideration of US$10 million. GT1
is a North American focused lithium exploration and development
company with hard rock spodumene assets in north-west Ontario,
Canada (“
Ontario Lithium Projects”).
“GT1’s team brings a
strong track record of lithium exploration and resource extraction,
which fits well with Lithium Americas’ expertise in chemical
processing,” commented Jon Evans, Lithium Americas’ President and
CEO. “With this initial investment, we look forward to working
closely with GT1 to help accelerate the development of a North
American lithium supply chain.”
GT1’s CEO, Luke Cox,
commented, “We are delighted to welcome Lithium Americas to the GT1
register. In combination with our existing strategic delivery
partners and major shareholders, Primero and AMCI, we look forward
to working with Lithium Americas in executing on our aggressive
project advancement and development plans over the next few
years.”
The Company’s
investment in GT1 is part of a share placement of approximately
US$40 million (A$55 million). Upon closing of the share placement,
Lithium Americas expects to own approximately 5% of GT1.
Collaboration
FrameworkIn addition to its US$10 million placement,
Lithium Americas has entered into a non-binding Collaboration
Framework (“Framework”) with GT1 to advance
evaluation of a strategically located, integrated lithium chemicals
business in North America.
The Framework allows
for evaluation of potential cooperative aspects between the two
businesses in relation to all aspects of the lithium processing and
production value chain, from the processing of spodumene through to
the production of battery-grade lithium chemicals. It is set to
leverage off and benefit from the considerable expertise within
both businesses with respect to the production of both intermediate
and final lithium products. Lithium Americas has a well-established
and highly technical knowledge base within lithium chemical
products and downstream lithium processing, which neatly
complements GT1’s upstream mining and spodumene processing
expertise and the planned development pathway for its Ontario
Lithium Projects.
Key guiding principles
of the Framework involve both parties working together in seeking
to:
- Rapidly advance GT1’s Ontario
Lithium Projects and fast-track the Seymour lithium project (80%
GT1) into production.
- Develop midstream and downstream
processing routes for battery-grade lithium chemicals in Ontario
and across North America.
- Advance development plans and
project financing for an integrated lithium chemicals
business.
- Source downstream offtake partners
and deliver an integrated supply chain solution to customers.
- Leverage Lithium Americas’ Lithium
Technical Development Center in Reno to further test and develop
intermediate and final lithium products.
About Green Technology
MetalsGT1 is a North American focused lithium exploration
and development business. GT1’s Ontario Lithium Projects comprise
high-grade, hard rock spodumene assets (Seymour, Root and Wisa) and
lithium exploration claims (Allison and Solstice) located on highly
prospective Archean Greenstone tenure in north-west Ontario,
Canada. GT1’s strategy is to build a vertically integrated lithium
business in Ontario.
About Lithium AmericasLithium
Americas is focused on advancing lithium projects in Argentina and
the United States to production. In Argentina, Caucharí-Olaroz is
advancing towards first production and Pastos Grandes represents
regional growth. In the United States, Thacker Pass has received
its Record of Decision and is advancing towards construction. 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:Investor
RelationsTelephone: 778-656-5820Email:
ir@lithiumamericas.comWebsite: www.lithiumamericas.com
FORWARD-LOOKING STATEMENTSThis
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 which
in this news release include, among other things, statements
related to: the Company’s investment in a private placement by GT1
and expected ownership interest upon closing thereof, provided
certain conditions to closing are met; the expected benefits to the
Company from such investment; any support the Company expects to
provide to GT1 to advance its projects; any future acquisition or
disposition of securities of GT1; expected benefits to Company from
the Collaboration Framework, including expectations regarding
future collaboration initiatives, complementary expertise, ability
to achieve the guiding principles under the Collaboration
Framework, including rapid advancement of the Ontario Lithium
Projects, development of processing routes for battery-grade
lithium chemicals in Ontario and across North America, advancement
of development plans and project financing for an integrated
lithium chemicals business, sourcing downstream offtake partners
and developing an integrated supply chain solution, and plans to
leverage the Company’s technical development center that is under
development in Reno for testing and development of lithium
products.
Forward-looking information is based upon a
number of factors and assumptions that, if untrue, could cause the
actual results, performance or achievements of the Company to be
materially different from future results, performance 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: changes to the current and
future business plans of the Company and separately of GT1, and the
strategic alternatives available to each of them; stock market
conditions generally; demand, supply and pricing for lithium;
competitive conditions in the lithium industry and related
industries; results of exploration activities and technical
reporting by GT1; current technological trends; a cordial business
relationship between the Company and GT1, and ability to
cooperatively advance and achieve the principles of the
Collaboration Framework; political and local support for the
proposed initiatives under the Collaboration Framework; and general
economic and political conditions in North America and other
jurisdictions where the Company and GT1 conducts business.
Additional risks, assumptions and other factors
upon which forward-looking information is based, as it pertains to
the Company and its properties, are set out in the Company’s
management discussion and analysis and most recent annual
information form, copies of which are available under our profile
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 applicable law. Accordingly, readers are
cautioned not to place undue reliance on forward-looking
information.
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