Lithium Americas (Argentina) Corp. (TSX/NYSE:
LAAC) (“
Lithium Argentina” or the
“
Company”) is pleased to announce the
completion of the previously announced agreement (the
“
Transaction”) with a subsidiary of Ganfeng
Lithium Co. Ltd. (“
Ganfeng Lithium”,) whereby
Ganfeng Lithium acquired $70 million in newly issued shares of
Proyecto Pastos Grandes S.A. (“
PGCo”), the
Company’s wholly-owned Argentinian subsidiary holding the Pastos
Grandes project (“
Pastos Grandes”) in Salta,
Argentina, representing a 14.9% interest in PGCo and Pastos
Grandes.
“The completion of
this Transaction is an important step forward for the combined
efforts of Lithium Argentina and Ganfeng Lithium in Argentina
emphasizing the collaboration and shared commitment of both
companies to innovate and responsibly progress the global clean
energy transition,” commented Sam Pigott, President and CEO of
Lithium Argentina. “Proceeds from the Transaction will be used to
strengthen our balance sheet, reduce short term debt at
Caucharí-Olaroz and provide additional flexibility to support our
future growth plans.”
Pastos Grandes is a
lithium brine development project acquired by the Company in early
2022 with the acquisition of Millennial Lithium Inc. The Project is
in the same basin as the Sal de la Puna project (together, the
“Pastos Grandes Basin”), adjacent to Ganfeng
Lithium’s Pozuelos-Pastos Grandes project (“PPG”)
and 100 km from the operating Caucharí-Olaroz project
(“Caucharí-Olaroz”) jointly owned and operated by
Lithium Argentina and Ganfeng Lithium. Based on current analysis,
the Company would expect that attractive fiscal incentives
resulting from the approval of the Large Investments’ Incentive
Regime (“RIGI”) in Argentina would apply to its
longer-term regional development plans at Pastos Grandes and the
Stage 2 expansion of Caucharí-Olaroz. The Company and Ganfeng
Lithium continue advancing a regional development plan for PPG and
the Pastos Grandes Basin with results expected around the end of
2024.
ABOUT LITHIUM
ARGENTINA
Lithium Argentina is
an emerging producer of lithium carbonate for use primarily in
lithium-ion batteries and electric vehicles. The Company, in
partnership with Ganfeng Lithium Co, Ltd., is ramping up production
of the Caucharí-Olaroz lithium brine operation in Argentina and
advancing development of additional lithium resources in the
region.
The Company currently
trades on the TSX and on the NYSE, under the ticker symbol
“LAAC.”
For further information contact:Investor
RelationsTelephone: +1 778-653-8092Email:
ir@lithium-argentina.comWebsite: www.lithium-argentina.com
CURRENCY
All amounts are expressed in US dollars unless otherwise
noted.
FORWARD-LOOKING INFORMATION
This news release
contains “forward-looking information” within the meaning of
applicable Canadian securities legislation and “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively referred to
herein as “forward-looking information”). These statements relate
to future events or the Company’s future performance. All
statements, other than statements of historical fact, may be
forward-looking information. Forward-looking information generally
can be identified by the use of words such as “seek,” “anticipate,”
“plan,” “continue,” “estimate,” “expect,” “may,” “will,” “project,”
“predict,” “propose,” “potential,” “targeting,” “intend,” “could,”
“might,” “should,” “believe” and similar expressions. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information.
In particular, this
news release contains forward-looking information, including,
without limitation, with respect to the following matters or the
Company’s expectations relating to the anticipated use of proceeds
from the Transaction; the anticipated benefits of the Transaction;
and the preparation and completion of a regional development plan
and feasibility study for the Pastos Grandes Basin and PPG and
availability of benefits related to RIGI.
Forward-looking
information does not take into account the effect of transactions
or other items announced or occurring after the statements are
made. Forward-looking information is based upon a number of
expectations and assumptions and is subject to a number of risks
and uncertainties, many of which are beyond the Company’s control,
that could cause actual results to differ materially from those
that are disclosed in or implied by such forward-looking
information. With respect to forward-looking information listed
above, the Company has made assumptions regarding, among other
things: the ability the Company and Ganfeng Lithium to prepare and
complete the regional development plan for the Pastos Grandes Basin
and PPG; the availability of fiscal incentives for the Company
under RIGI; 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 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 the
Company’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 Argentine 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 market prices for lithium
products; development and construction costs for the Company’s
projects, and costs for any additional exploration work at the
projects; uncertainties inherent to estimates of Mineral Resources
and Mineral Reserves, including whether Mineral Resources not
included in Mineral Reserves will be further developed into Mineral
Reserves; reliability of technical data; anticipated timing and
results of exploration, development and construction activities;
the Company’s ability to obtain additional financing 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 inflationary and other
conditions on the Company’s business and global mark; and accuracy
of development budget and construction estimates.
Although the Company
believes that the assumptions and expectations reflected in such
forward-looking information are reasonable, the Company can give no
assurance that these assumptions and expectations will prove to be
correct. Since forward-looking information inherently involves
risks and uncertainties, undue reliance should not be placed on
such information. The Company’s actual results could differ
materially from those anticipated in any forward-looking
information as a result of risk factors, including, without
limitation, the risk that the proceeds of the Transaction will not
be used as contemplated; risk that the benefits of the Transaction
will not be realized as anticipated, or at all; risk that the
Company and Ganfeng Lithium will not be able to prepare and
complete a regional development plan for the Pastos Grandes Basin
and PPG as contemplated, or at all; risk that the Company will not
receive fiscal incentives under RIGI as contemplated, or at all:
and other risks factors contained in the Company’s latest annual
information form (“AIF”), management information
circular, management’s discussion and analysis and other continuous
disclosure documents (collectively, “Company Disclosure
Documents”), all of which are available on SEDAR+.
All forward-looking
information contained in this news release is expressly qualified
by the risk factors set out in the Company Disclosure Documents.
Such risk factors are not exhaustive. The Company does not
undertake any obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law. All forward-looking
information contained in this news release is expressly qualified
in its entirety by this cautionary statement. Additional
information about the above-noted assumptions, risks and
uncertainties is contained in the Company Disclosure Documents, all
of which are available on SEDAR+ at www.sedarplus.ca.
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