Lithium Americas Corp. (TSX: LAC; OTCQX: LACDF) has closed the investment agreement with GFL International Co., Ltd., a wholly-owned subsidiary of Jiangxi Ganfeng Lithium Co., Ltd. 江西赣锋锂业股份有限公司 (SHE: 002460), pursuant to which, Ganfeng Lithium agreed to provide Lithium Americas with US $172 million in financing.
Lithium Americas completed the issue and sale of the remaining 63,750,000 common shares at a price of CDN $0.85 per common share for gross proceeds of approximately CDN $54 million or US$40 million, executed a credit agreement for a US $125 million credit facility and executed an off-take agreement for the purchase and sale of lithium products.
Together with 11,250,000 common shares for US $7 million issued on January 27, 2017 at initial close, Ganfeng Lithium now holds 75,000,000 common shares of Lithium Americas.
Tom Hodgson, Lithium Americas’ CEO, commented: “We welcome Ganfeng Lithium as our largest shareholder. The closing of the Investment Agreement places Lithium Americas in a strong financial position and will allow the Company to now commence construction of the Cauchari-Olaroz lithium project with our joint venture partner SQM, with the objective of becoming the next low cost brine producer of lithium by 2019.”
Xinyu, Jiangxi based Jiangxi Ganfeng Lithium is the largest integrated lithium producer in in China, with a total capacity of around 30,000 tonnes per annum of lithium carbonate equivalent. Ganfeng Lithium’s products include lithium metal, lithium hydroxide, lithium carbonate, lithium fluoride, and lithium chloride. In Australia, Ganfeng Lithium owns a 43.1% interest in the Mount Marion lithium spodumene project with Mineral Resources Ltd. (43.1%) and Neometals Ltd. (13.8%).
Lithium Americas, together with SQM, is developing the Cauchari-Olaroz lithium project, located in Jujuy, Argentina, through its 50% interest in Minera Exar. In addition, Lithium Americas owns 100% of the Lithium Nevada project (formerly Kings Valley project), and RheoMinerals Inc., a supplier of rheology modifiers for oil-based drilling fluids, coatings, and specialty chemicals.