Lithium Americas shares rose practically 8% on the information, buying and selling at C$2.58 per share at midday. The corporate has a market cap of C$418 million.
“The completion of this transaction is a crucial step ahead for the mixed efforts of Lithium Argentina and Ganfeng Lithium in Argentina emphasizing the collaboration and shared dedication of each corporations to innovate and responsibly progress the worldwide clear power transition,” Lithium Argentina CEO Sam Pigott stated in a launch.
“Proceeds from the transaction might be used to strengthen our stability sheet, cut back brief time period debt at Caucharí-Olaroz and supply further flexibility to assist our future development plans.”
Acquired in early 2022 by means of the acquisition of Millennial Lithium, the Pastos Grandes venture is a lithium brine improvement positioned in the identical basin as Ganfeng Lithium’s Pozuelos-Pastos Grandes venture. It’s additionally close to the Caucharí-Olaroz mine — a three way partnership between the 2 corporations that started manufacturing final yr.
Ganfeng holds a 46.7% stake in Caucharí-Olaroz, in Argentina’s Jujuy province, and Lithium Argentina holds 44.8%.
The mine is at present working at 70% of its 40,000-tonne-per-year design capability, with manufacturing reaching 5,600 tonnes of lithium carbonate within the second quarter of 2024, a 24% enhance from the earlier quarter. The venture stays on monitor to satisfy its 2024 manufacturing steering of 20,000-25,000 tonnes. Throughout this ramp-up section, manufacturing is primarily offered to Ganfeng Lithium, with the corporate specializing in producing battery-quality lithium as operations progress.
Lithium Argentina is positioning itself as a key participant within the lithium market, specializing in lithium carbonate manufacturing to be used in lithium-ion batteries and electrical autos.
As of June 30, Lithium Argentina held $96 million in money and money equivalents, with an undrawn C$75 million credit score facility from Ganfeng.
Lithium Americas spun off Lithium Argentina final yr to separate its South American belongings to deal with its Thacker Move venture in Nevada. The separation aimed to distance the Thacker Move venture from Chinese language involvement as a result of US-China relations and to safe funding from the US Division of Vitality. The US and its allies have been cracking down on Chinese language funding in mining as they push to compete with China for entry to important minerals.
Lithium Americas secured a $2.3 billion mortgage from the US Division of Vitality in March to finance the development of processing amenities at Thacker Move. Part 1 of Thacker Move is predicted to supply 40,000 tonnes of battery-grade lithium carbonate yearly and function for 40 years.