- Write by:
-
Tuesday, February 11, 2020 - 12:00:26 PM
-
732 Visit
-
Print
Mining News Pro - Vancouver-based Lithium Americas has entered into definitive agreements with China’s Ganfeng Lithium to alter the ownership structure of their joint venture (JV) company Minera Exar, the holding company for the Caucharí-Olaroz lithium brine project in Jujuy, Argentina.
According to Mining News Pro - Pursuant to the agreements, Ganfeng will pay $16 million to subscribe for new shares in Minera Exar to increase its share in the project from 50% to 51%, while Lithium Americas will retain a 49% stake and receive $40 million cash.
The Caucharí-Olaroz project remains on schedule to start production at 40,000 t/y of battery-quality lithium carbonate early next year.
The move helps Lithium Americas to cut its debt – up more than eight times in the past year – and also reduce its exposure to recession-hit Argentina while it continues to develop the $400 million Thacker Pass project in Nevada.
The deal also helps Ganfeng, which counts BMW, Tesla and LG Chem as key customers, expanding its dominance over the EV supply chain. The revised structure of the JV will also improve Ganfeng’s financial flexibility and position regarding regulatory approvals in China.
The deal – set to close before August – represents a U-turn for Lithium Americas, which maintained that it had no interest in selling more than 50% of its stake in the flagship lithium project since last year.
A few weeks ago, Ganfeng approached the company with the restructuring proposal, which was approved by the Lithium Americas board late last week.
Shares of Lithium Americas rose more than 18% by market close Monday. The company has a market capitalization of C$583.2 million.
Short Link:
https://www.miningnews.ir/En/News/486913
Two companies said on Wednesday they are seeking offshore seabed acreage on the Norwegian continental shelf where they ...
Canadian copper miner Hudbay Minerals plans to raise $300.2 million in an equity offering to help fund near-term growth ...
Suncor Energy Inc. shares rose to an almost 16-year high after the oil-sands producer accelerated plans to ramp up share ...
Copper’s lightning rally to record highs may not be sustainable in the coming weeks, with action concentrated on the ...
Over three decades, Jose Luis Manzano built a reputation for diving into distressed sectors in Argentina and navigating ...
China’s SDIC Mining Investment Co. is in advanced talks for a significant minority stake in Asia Pacific Potash Corp., ...
South Korea has started building its lithium inventories to secure supplies of the critical mineral that’s crucial for ...
The copper rally turned ugly this week, morphing into a ferocious short squeeze on the US contract operated by CME ...
Spot silver surpassed $30 an ounce to hit the highest level in more than a decade.
No comments have been posted yet ...