Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium
Americas" or the "Company") is pleased to provide an
update on the Caucharí-Olaroz lithium project (“Caucharí-Olaroz”)
in partnership with Ganfeng Lithium Co., Ltd (“Ganfeng Lithium”)
(together, the “Caucharí-Olaroz Partners”) in Jujuy province,
Argentina.
The Caucharí-Olaroz
Partners have approved the commencement of development planning for
a second stage (“Stage 2”) expansion of at least an additional
20,000 tonnes per annum (“tpa”) of lithium carbonate equivalent
(“LCE”) production capacity from Caucharí-Olaroz.
“Caucharí-Olaroz is on
track to become the largest new lithium brine operation in over 20
years,” commented George Ireland, Chairman of Lithium Americas,
“With construction for Stage 1 expected to be complete within the
next year, together with Ganfeng Lithium, we are beginning to plan
our next phase of growth in Argentina.”
Stage 2
Expansion PlanThe Caucharí-Olaroz Stage 2 expansion is
targeting the following development parameters:
- Production capacity of at least 20,000 tpa LCE to commence in
2025.
- Construction commencing in H2 2022,
following the commissioning and start-up of the initial 40,000 tpa
operation (“Stage 1”).
- Infrastructure additions to support
long-term expansions beyond Stage 2.
The Caucharí-Olaroz
Partners expect to provide further details of the Stage 2 expansion
plan by Q4 2021, followed by an updated feasibility study in
2022.
Stage 1
Construction UpdateConstruction on the initial 40,000 tpa
Stage 1 operation remains on track for first production in
mid-2022.
- There are currently over 1,000
workers on site, following the completion of additional camp
capacity to ensure compliance with strict COVID-19 health and
safety protocols. No positive cases of COVID-19 have been reported
at site in eight months.
- In Q2 2021, senior members of
Ganfeng Lithium’s commissioning and construction team arrived in
Argentina to assist the project through to start-up. Ganfeng
Lithium’s team brings recent experience constructing and
commissioning lithium carbonate plants in China.
- All major equipment and the
majority of bulk materials have been delivered to site, reducing
risk of supply chain delays.
- The evaporation ponds are well
advanced with sufficient brine inventory to support production ramp
up.
- Mechanical construction of the lime
plant is completed and the piping work to connect the lime line is
more than 95% complete.
Qualified PersonThe 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. Detailed scientific and technical
information on the Caucharí-Olaroz project can be found in the “NI
43-101 Technical Report – Updated Feasibility Study and Mineral
Reserve Estimation to Support 40,000 tpa Lithium Carbonate
Production at the Caucharí-Olaroz Salars, Jujuy Province,
Argentina”, with an effective date of September 30, 2020, available
on the Company’s SEDAR profile at www.sedar.com.
About Ganfeng LithiumGanfeng
Lithium is the largest lithium chemicals producer in China, with a
diverse product mix including lithium carbonate, lithium chloride,
lithium fluoride, lithium metal and butyl lithium. Founded in 2000,
Ganfeng Lithium is listed on the Shenzhen Stock Exchange and Hong
Kong Stock Exchange (HKEX: 1772, SZSE: 002460).
About Lithium AmericasLithium
Americas is a development-stage company with projects in Jujuy,
Argentina and Nevada, 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:
Investor RelationsTelephone:
+1-778-656-5820Email: 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: successful development of the
Caucharí-Olaroz project and future expansion plans, including
timing, progress, construction, milestones, anticipated production
and results thereof; the expected benefits from previous
transactions; expectations and anticipated impact of the COVID-19;
capital expenditures and programs; estimates of the mineral
resources and mineral reserves at the Company’s properties;
development of mineral resources and mineral reserves; government
regulation of mining operations and treatment under governmental
and taxation regimes; the future price of commodities, including
lithium; the realization of mineral resources and mineral reserves
estimates; the timing and amount of future production; currency
exchange and interest rates; expected outcome and timing of
environmental surveys and permit applications and other
environmental matters; the Company’s ability to raise capital;
expected expenditures to be made by the Company on the properties
in which it holds an interest; the timing, cost, quantity, capacity
and product quality of production of the Caucharí-Olaroz project;
successful operation of the Caucharí-Olaroz project under its
co-ownership structure; whether the Company will ever be able to
realize on an additional debt funding commitment, including the
terms and timing thereof; ability to produce high purity battery
grade lithium products; capital costs, operating costs, and
sustaining capital requirements of the Caucharí-Olaroz project; the
Company’s share of the expected capital expenditures for the
construction 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, the following: current
technological trends; a cordial business relationship between the
Company, Ganfeng and JEMSE for the Caucharí-Olaroz project; the
ability of the Company to fund, advance and develop the
Caucharí-Olaroz project and the Thacker Pass project, and the
respective impacts of the projects when production commences; the
Company’s ability to operate in a safe and effective manner;
uncertainties relating to receiving and maintaining mining,
exploration, environmental and other permits or approvals in Nevada
and Argentina; demand for lithium, including that such demand is
supported by growth in the electric vehicle market; the impact of
increasing competition in the lithium business, and LAC’s
competitive position in the industry; general economic conditions;
the stable and supportive legislative, regulatory and community
environment in the jurisdictions where the Company operates;
stability and inflation of the Argentinian peso, including any
foreign exchange or capital controls which may be enacted in
respect thereof, and the effect of current or any additional
regulations on the Company’s operations; the impact of unknown
financial contingencies, including litigation costs, on the
Company’s operations; gains or losses, in each case, if any, from
short-term investments in Argentine bonds and equities; estimates
of and unpredictable changes to the demand and market prices for
lithium products; exploration, development and construction costs
for the Caucharí-Olaroz project and the Thacker Pass project;
estimates of mineral resources and mineral reserves, including
whether mineral resources will ever be developed into mineral
reserves; reliability of technical data; anticipated timing and
results of exploration, development and construction activities,
including the impact of COVID-19 on such timing; timely responses
from governmental agencies responsible for reviewing and
considering permitting activities for the projects in which the
Company holds an interest; the Company’s ability to obtain
additional financing as needed to advance the projects in which it
holds an interest, including pursuant to an additional debt funding
commitment, on satisfactory terms or at all; the ability to develop
and achieve production at any of the Company’s mineral exploration
and development properties; the impact of COVID-19 on the Company’s
business generally; the expected benefits from prior transactions;
accuracy of development budget and construction estimates; and
preparation of a development plan and feasibility study for lithium
production at the Thacker Pass project.
Forward-looking information also involves known
and unknown risks that may cause actual results to differ
materially. These risks include, among others, inherent risks in
the 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 latest
management discussion analysis and 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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