Lithium Americas Announces Investment in Arena Minerals Inc.
July 12 2021 - 9:00AM
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium
Americas" or the "Company") announced that it has entered
into an agreement to acquire 42,857,143 subscription receipts of
Arena Minerals Inc. (TSX-V: AN) (“Arena Minerals”) in a private
placement at C$0.14 per subscription receipt for total
consideration of C$6.0 million (US$4.8 million).
The strategic
ownership in Arena Minerals will provide Lithium Americas future
optionality to advance exploration in Argentina in proximity to the
Caucharí-Olaroz lithium project (“Caucharí-Olaroz”), which is being
jointly developed by the Company and Ganfeng Lithium Co. Ltd.
("Ganfeng"). Ganfeng also holds a 18.7% equity investment in Arena
Minerals. Both Lithium Americas and Ganfeng are expected to
leverage their deep technical and operational experience to support
Arena Minerals’ exploration and development opportunities in
Argentina, including the Sal de la Puna project.
"We look forward to
working with Arena Minerals and Ganfeng to support the pursuit of
resource exploration opportunities in Argentina," commented Jon
Evans, President and CEO. "This investment will allow Lithium
Americas to advance our long-term resource development plans, while
maintaining our team’s focus on execution at Caucharí-Olaroz and
the Thacker Pass project.”
The investment is part
of a C$10 million non-brokered private placement of subscription
receipts of Arena Minerals (the “Offering”). The proceeds of the
Offering will be applied by Arena Minerals to the acquisition of
the Sal de la Puna lithium brine project in Salta, Argentina,
exploration and development expenditures on the Company's lithium
assets and for general corporate purposes. Lithium Americas
currently does not hold any securities of Arena Minerals. On
closing, assuming completion of the full $10 million offering by
Arena Minerals, the Company will own approximately 12.9% (14.6% on
a fully diluted basis) of the issued and outstanding shares of
Arena Minerals.
Pursuant to the
agreement, Lithium Americas has the right (i) to participate in
future Arena Minerals financings to maintain its pro rata ownership
interest in Arena Minerals; and (ii) to appoint a nominee to the
Arena Minerals board of directors. These rights are conditioned on
Lithium Americas maintaining an ownership interest in Arena
Minerals of 7.5% and 10.0% of Arena Minerals’ share capital,
respectively.
Upon closing, each
subscription receipt will be exchanged for one common share of
Arena Minerals, and one-half of one common share purchase warrant.
Each warrant entitles the holder to acquire one common share of
Arena Minerals at C$0.25 for a period of 24 months from the date of
issuance. If Arena Minerals’ acquisition of Sal de la Puna is not
met by August 15, 2021, the proceeds of the Offering will be
returned to the holder.
The Company is
acquiring the securities for investment purposes. Depending on
market conditions and other factors, Lithium Americas may, from
time to time, acquire additional common shares, common share
purchase warrants or other securities of Arena or dispose of some
or all of the common shares, common share purchase warrants or
other securities of Arena that it owns at such time. An early
warning report will be filed by Lithium Americas on SEDAR at
www.sedar.com in accordance with applicable securities laws. To
obtain a copy of the early warning report, please contact the
Corporate Secretary of Lithium Americas at 778-656-5820 or
legal@lithiumamericas.com.
About Arena MineralsArena
Minerals Inc. (TSX-V: AN) is an exploration-stage lithium company
focused on developing brine resources in Argentina. Arena Minerals’
team has extensive experience in lithium exploration and
development, including the discovery and development of the Salar
de los Angeles lithium brine project in Argentina, which was
acquired in 2018 for C$265 million. Arena Minerals owns the
Antofalla lithium brine project in Argentina, consisting of claims
covering a total of 6,000 hectares in the central portion of Salar
de Antofalla, located immediately south of Albemarle Corporation's
Antofalla project. Arena Minerals has recently agreed to acquire
the Sal de la Puna project in Salta, Argentina.
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: 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
Arena Minerals 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 Arena Minerals to advance its
projects; and any future acquisition or disposition of securities
of Arena Minerals.
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 Company’s
current and future business plans and the strategic alternatives
available to the Company; stock market conditions generally;
demand, supply and pricing for lithium; results of exploration
activities and technical reporting by Arena Minerals; current
technological trends; a cordial business relationship among the
Company, Arena Minerals and Ganfeng; the ability of the Company to
fund, advance and develop its projects; and general economic and
political conditions in Argentina and other jurisdictions where the
Company 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 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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