Lithium Americas Argentina (TSX:LAAC) has successfully closed a previously announced agreement with a subsidiary of Ganfeng Lithium. As part of the agreement, Ganfeng has acquired US$70 million in newly issued shares of Proyecto Pastos Grandes S.A. (PGCo), which is a wholly owned Argentinian subsidiary holding the Pastos Grande Project. This acquisition represents a 14.9 per cent interest in PGCo and the Pastos Grandes project.
Following this development, the shares of Lithium Americas Argentina have increased by 1.75 per cent to C$3.49 as of 12:54 pm ET.
Lithium Americas acquired the Pastos Grandes project in early 2022 through the acquisition of Millennial Lithium. This lithium brine development project is situated adjacent to Ganfeng Lithium’s Pozuelos-Pastos Grandes project and is located 100 kilometers away from the operating Caucharí-Olaroz project.
The company, Lithium Americas Argentina, is focused on developing lithium projects to support the lithium supply chain and the global transition to cleaner energy. They also own a 44.8 per cent interest in the Cauchari-Olaroz project in Jujuy, Argentina.
Sam Pigott, CEO of Lithium Americas, emphasized the significance of this transaction in fostering collaboration and commitment between Lithium Argentina and Ganfeng Lithium. The proceeds from the agreement will be utilized to bolster the company’s balance sheet, reduce short-term obligations at Caucharí-Olaroz, and provide flexibility to support future growth plans.
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