Lithium Americas Announces Temporary Suspension of Construction in Argentina Following Government Restrictions
March 20 2020 - 8:40AM
Lithium Americas Corp. (TSX:
LAC)
(NYSE:
LAC) ("
Lithium Americas"
or the "
Company") today announced that
construction activities at the Cauchari-Olaroz lithium project
(“
Caucharí-Olaroz” or the
“
Project”) in Jujuy, Argentina, are temporarily
suspended, in accordance with government-mandated restrictions in
response to COVID-19.
On March 19, 2020, the government of Argentina
enacted the Urgency Decree (DNU) #297/20 ordering, among other
provisions, a national mandatory quarantine effective from March
20, 2020 until March 31, 2020. Accordingly, development work at
Caucharí-Olaroz will be suspended immediately and the Project will
be placed on care and maintenance. COVID-19 medical safety
procedures have been implemented at site and at the Jujuy office
and no employees are currently identified as infected with the
COVID-19 virus.
Jon Evans, Lithium Americas’ President and CEO,
said. "Our focus is on the safety and health of our employees,
contractors and the local communities. We are in the process of
safely demobilizing the over 1,000 person construction workforce in
support of the government of Argentina's measures to control the
spread of COVID-19. Our development of this world-class lithium
project is well advanced and we would expect to be able to resume
construction once the suspension is lifted.”
The suspension of construction may impact the
Company’s previous estimate for completion of construction by early
2021. Until construction activities resume, the Company is unable
to quantify the extent of any such impact. Lithium Americas
continues to monitor developments in respect of COVID-19 and its
impact on operations at Caucharí-Olaroz and its other business
interests.
About Lithium Americas
Lithium Americas is focused on developing
Caucharí-Olaroz in Jujuy, Argentina. Lithium Americas, through a
wholly owned subsidiary, Lithium Nevada Corp., owns 100% of the
Thacker Pass lithium project located in 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 Relations Suite 300 – 900 West
Hastings Street Vancouver, BC, V6C 1E5Telephone:
778-656-5820 Email: ir@lithiumamericas.comWebsite:
www.lithiumamericas.com
Forward-Looking Statements &
Information
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 with respect to: the
anticipated decision-making with respect to Minera Exar; ongoing
restrictions imposed by the government of Argentina in response to
COVID-19; the suspension of development work at Cauchari-Olaroz and
operation of the project on a care and maintenance basis; the
maintenance of a reduced workforce onsite; the demobilization of
the Cauchari-Olaroz workforce; the funding of the Company and the
Cauchari-Olaroz project; the resumption of construction at
Cauchari-Olaroz; the impact of the suspension on construction and
the estimated substantial mechanical completion of construction by
early 2021; the ability to quantify the extent of the impact on the
Company of the suspension on construction; and the continued
monitoring of developments of COVID-19.
Forward-looking information may involve known
and unknown risks, assumptions and uncertainties which may cause
the Company’s actual results or performance to differ materially.
This 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
contingences. These assumptions include, among others: impact of
COVID-19; resumption of business upon the lifting of the national
mandatory quarantine; forecasted demand for lithium products; the
Company’s ability to fund, advance and develop the Caucharí-Olaroz
project into production, including results therefrom and timing
thereof; accuracy of mineral resources, including whether such
mineral resources can ever be converted into reserves; accuracy of
current budget and construction estimates; maintenance of a
positive business relationship with Ganfeng Lithium; and a stable
and supportive legislative and regulatory environment.
Forward-looking information also involve known and unknown risks
that may cause actual results to differ materially, these risks
include, among others: risks related to global pandemics such as
COVID-19; risks related to re-mobilizing the Company’s workforce;
inherent risks in development of capital intensive mineral projects
(including as co-owners); risk related to variations in mineral
resources and mineral reserves; risks related to global demand for
lithium, recovery rates and lithium pricing; risks related to
changes in project parameters and funding thereof; risks related to
changes in legislation or governmental policy; title risk, cost
overruns, operational risks and general market and industry
conditions. Additional risks, assumptions and other factors are set
out in the Company’s management discussion 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 law. Accordingly, readers are cautioned not
to place undue reliance on forward-looking information.
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