Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
SALTA, Argentina, Sept 14 (Reuters) - In Argentina's remote northern Salta province, the silence of the desert landscape is broken only by the hum of machinery pumping salt-water brine to extract lithium, a sign of accelerating efforts to ride the global electric vehicle boom.
Beneath the South American country's highland salt flats, reached by winding mountain roads, is buried the world's third largest reserve of the ultra-light battery metal, which has seen a price spike over the past year on the back of a global push towards greener modes of transport.
Already the fourth top producer of lithium worldwide, Argentina's national and local governments are now looking to speed up development, held back for years by red tape, high tax rates, rampant inflation and currency controls.
Provinces like Salta are building regional mining logistics nodes and access roads, lowering tax rates and rationalizing confusing rules for the sector to attract investment in the 'white gold' metal.
That has seen a flurry of new activity, deals and plans to ramp up production, which could make Argentina a key player in the electric vehicle supply chain in coming years, with demand from carmakers and buyers like China expected to gain pace.
"Argentina could become the world's leading producer from brines in less than a decade if the flow of projects is followed and maintained," David Guerrero Alvarado, a consultant advising Canada's Alpha Lithium (ALLI.V), told Reuters in Salta.
Alpha Lithium is in the investigation stage for a project in the nearby Salar Tolillar, one of many early-stage developments that - while offering promise - need an often long and costly process to be turned into a reality.
With countries around the world scrambling to reduce emissions, rising global lithium demand and surging prices have drawn increased interest in the so-called 'lithium triangle' that spans parts of Argentina, Bolivia and Chile.
In Argentina, mining provinces such as Salta, Jujuy and Catamarca have moved to encourage wary investors, signing an agreement in June to create uniform rules and to "strengthen infrastructure, legal security and fiscal stability."
Salta's Secretary of Mining and Energy, Flavia Royon, told Reuters the province could produce 200,000 tonnes of lithium carbonate equivalent annually by 2025, after flicking though a list of upcoming lithium developments.
That would be a huge ramp-up, equivalent to around one-fifth of forecast global production that year.
"There's interest in Salta and it's the Argentine province with the most lithium projects in the pipeline," she said.
The country's CAEM mining chamber predicts a lower 175,000 tonnes nationally by 2025 from an estimated 38,800 tonnes this year. But - with lithium projects often taking years to ramp up - that remains a lofty goal.
Reuters Graphics Reuters Graphics FUELS OF THE FUTURE
Argentina's center-left government has been making a conscious and strategic push towards lithium.
Last year it lowered taxes on all mining exports to 8% from 12% and in April eased capital controls on firms taking foreign currency out of the country for projects with investments of over $100 million. It has backed the state energy firm YPF (YPFD.BA) to create a lithium battery plant and is pushing a bill to lower taxes on electric cars.
An employee grabs carbonate lithium after being processed at the Rincon Mining lithium pilot plant, at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. REUTERS/Agustin Marcarian An employee walks at the Rincon Mining lithium pilot plant, at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. Picture taken August 12, 2021. REUTERS/Agustin Marcarian An employee walks at the Rincon Mining lithium pilot plant, at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. Picture taken August 12, 2021. REUTERS/Agustin Marcarian
1/6 An employee walks at the Rincon Mining lithium pilot plant, at the Salar del Rincon salt flat, in Salta, Argentina August 12, 2021. Picture taken August 12, 2021. REUTERS/Agustin Marcarian
"We will focus on areas and fuels of the future, that generate zero polluting emissions, which are basically hydrogen and lithium batteries," Production Minister Matias Kulfas said in a recent meeting with reporters in Buenos Aires.
A source at the central bank, which is keen to rebuild battered foreign currency reserves, said that the country had seen growing investor interest in mining, including in lithium.
Australia's Orocobre Ltd (ORE.AX) and U.S. miner Livent Corp (LTHM.N), which have supply tie-ups with Toyota Corp (7203.T) and BMW (BMWG.DE) respectively, operate the two producing lithium projects in Argentina out of a total of over 60 proposed projects in various stages of development.
Others in the country include Australia's Argosy Minerals (AGY.AX), Lake Resources (LKE.AX) and Greenwing Resources (GW1.AX), as well as South Korea's Posco (005490.KS) and Neo Lithium Corp (NLC.V), backed by China's CATL (300750.SZ).
China's Ganfeng Lithium Co Ltd (002460.SZ) is in a bidding war to buy Argentina-focused Millennial Lithium Corp (ML.V) after an unnamed battery maker made a rival bid to its $280 million offer.
Ganfeng and Lithium Americas (LAC.TO) are aiming to produce some 40,000 tonnes of lithium carbonate equivalent from the Cauchari-Olaroz mine, with production set to start in 2022.
Doubts, however, remain about whether Argentina can rev up its lithium output in the way it has promised. Half a decade ago, under a business-friendly government, the country expressed ambitions to overtake larger producer Chile but failed to do so.
"Argentina has the resources, but in order to transform them into reserves and making projects... a series of clear and stable rules is needed," said Buenos Aires-based Natacha Izquierdo, an analyst at consultancy Abeceb.
Alejandro Moro, general manager of Rincon Lithium, an Australian firm that owns a concession on the Rincon salt flats in Salta, agreed there remained hurdles to attracting capital.
"This a country with a quite unstable macroeconomy, with a high degree of taxes that are imposed on the capital that comes to invest," he said.
The firm is running a pilot plant on the flats, almost 4,000 meters (13,100 ft) above sea level. It pumps brine through pipes 30 meters below the ground, which is then refined to produce lithium carbonate. Rincon hopes to extract 50,000 tonnes a year by 2025.
Despite his reservations, however, Moro said he had become more optimistic about Argentina's support for mining investments after meeting with senior officials a few weeks earlier.
Argentina, an agricultural powerhouse with abundant oilseeds, has for years focused energy subsidies on biofuels, but officials are now signaling a shift in priorities towards electric vehicles - and lithium.
"Definitely, lithium is going to replace biofuels," Moro said.
Register now for FREE unlimited access to reuters.com
Reuters Graphics Reuters Graphics Reporting by Agustin Geist in Salta; Additional reporting by Maximilian Heath, Miguel Lo Bianco and Hernán Nessi in Buenos Aires; Writing by Nicolás Misculin; Editing by Adam Jourdan and Rosalba O'Brien
Argentina is facing a dilemma over the future of its lithium. President Alberto Fernández and his government want to boost the sector’s development, and for the state to play a prominent role in both the extraction of the mineral and the development of batteries for electric vehicles (EVs). However, social and environmental tensions over such ambitions remain.
The government’s desire for expansion has an international dimension. Globally, the transportation sector is estimated to be responsible for nearly a quarter of CO2 emissions, and moving away from combustion engines in favour of EVs is seen as a prerequisite for the energy transition. This is where lithium plays a central role as a key mineral – and one that Argentina has an abundance of.
The salt flats of Argentina, Bolivia and Chile account for almost 60% of global lithium resources. Argentina is home to 9% of the world’s total reserves – resources whose exploitation has been proven to be viable in technical and economic terms – and these are the third-largest behind Chile and Australia.
Lithium in Argentina There are currently two projects producing lithium for export in Argentina. On the Salar del Hombre Muerto salt flat in the northwestern province of Catamarca, the US company Livent, now associated with BMW, has a production capacity of 20,000 tonnes of lithium equivalent per year, and plans to double this with an investment of US$640 million. The second project is Sales de Jujuy in the Salar de Olaroz flats of Jujuy province, with a capacity of 17,500 tonnes of lithium per year. It is managed by Australia’s Orocobre, in partnership with Japan’s Toyota Tsusho and the provincial company Jujuy Energía y Minería Sociedad del Estado (JEMSE). Sales de Jujuy sells lithium to Toyota in Japan and to other battery manufacturers in Korea and China.
Argentina lithium future 2
The only project currently in the pipeline is Caucharí-Olaroz, also in Jujuy province, operated by Minera Exar and co-owned by the Canadian company Lithium Americas and China’s Ganfeng Lithium, with JEMSE holding a minority stake. Production is due to start next year and, once construction is complete, it will have a capacity of 25,000 tonnes of lithium carbonate per year. Caucharí-Olaroz has contracts with Tesla, Volkswagen and BMW.
According to official figures from the Mining secretariat, last year 31,500 tonnes of lithium carbonate were exported from Argentina for US$134 million, down from US$184 million in 2019. With full production from Caucharí-Olaroz, the country’s total capacity would increase from the current 37,500 tonnes per year to 85,000 tonnes.
Elsewhere, the French company Eramet has seen its project at the Salar de Centenario-Ratones flats in Salta province stalled by the pandemic and Argentina’s broader economic uncertainty. Working in the same vein are the South Korean firm Posco, which plans to build a lithium carbonate and hydroxide plant in Salta, and the Australian companies Galaxy and Orocobre’s investment in Catamarca.
31,500
Tonnes of lithium carbonate exported from Argentina in 2020 Practically all the concessions to salt flats in Argentina are in the hands of between 50 and 60 firms. Martín Obaya, a researcher at the National University of General San Martín, argues that the regulatory framework for mining activity favours speculation on such projects, with companies buying a concession but then selling it to obtain income.
Argentina’s mining investment law and its mining code, which regulate lithium activity, allow for duty-free imports of equipment, include tax breaks and fiscal stability, and establishes royalties of just 3% for exports. It does not establish mechanisms for dialogue with communities, nor does it include tools to advance value addition.
The situation is different in Chile and Bolivia, where lithium is considered a strategic resource. In Chile, private companies operate under contracts with the state, with flexible royalties of between 6% and 40% paid, and resources are earmarked to finance research centres. Meanwhile in Bolivia, the system is public and pilot projects have been developed but are not yet at the industrial phase.
Environmental conflicts In a contested field, one area in which conflicts can arise is over water. “Lithium mining competes for a critical resource such as water, as these [salt flats] are areas of extreme aridity,” explains María Laura Castillo Díaz of the Fundación Ambiente y Recursos Naturales (FARN). “The little fresh water that is available is underground and is a basic resource for communities and biodiversity.”
To extract the mineral from the ground, the companies drill a well between 200 to 400 metres deep to extract water along with minerals. The liquid is then left to stand for one to two years in huge pools, from which the water evaporates due to solar energy. The resulting compound thus requires large quantities of fresh water in order to form lithium carbonate.
In the Olaroz salt flat and in Catamarca, the lithium sector is advancing, despite some tension with surrounding communities. This is not the case, however, in Salinas Grandes, a basin straddling Salta and Jujuy provinces, and in which 33 different communities live. Several exploratory projects have been halted here due to conflicts, and as a result there is practically no active business presence at this moment in time.
Alicia Chalabe, a lawyer for these communities of Salinas Grandes, describes how they are “organised” and that “conflict will continue to exist as long as indigenous rights are not recognised.” She adds that “provincial legislation does not contemplate the right to prior consultation. The communities are not properly informed, nor are they asked for their consent in cases where biodiversity conditions are affected.”
Conflict will continue as long as indigenous rights are not recognised
The communities’ claim is based on the International Labour Organization’s (ILO) Convention 169, which concerns the protection of indigenous and tribal peoples’ lands, and which has been ratified by Argentine law. The Escazú Agreement, the first environmental treaty in Latin America and the Caribbean, is also in force, and establishes regional standards for environmental access rights.
However, with demand for lithium expected to soar, legal conflict over these lands and resources may intensify – particularly given inefficiencies in the lithium extraction process. As Ernesto Calvo, director of the Instituto de Química Física de los Materiales, Medio Ambiente y Energía (INQUIMAE) at the University of Buenos Aires, explains: “The current method of lithium extraction is not sustainable because of the volume of water it requires and the waste it generates. It is also very inefficient in economic terms, which means that it will not be able to meet the 35-fold increase in demand that is expected in a scenario where electric vehicles become widespread.”
Calvo himself and his team have developed a new extraction method that is competing with projects from companies and governments around the world to reach an industrial scale. “Sooner or later there will be a technological change in favour of a more efficient, cost-effective and environmentally friendly direct extraction method,” he told Diálogo Chino.
Plans for lithium in Argentina Alberto Fernández’s government is studying a bill that aims to consolidate a public company for lithium production, along with a self-sufficient and comprehensive commission that would function across scientific, technical, commercial and industrial levels. The commission would invite the participation of the national and provincial governments, indigenous communities and universities. It would also facilitate a new agency aimed at stimulating scientific development in lithium. Sources among pro-government deputies argue that this new public entity should resemble YPF, the national oil company, but highlight that the concessions of salt flats represent a problem in this regard.
Argentina lithium future 3 Workers handle lithium carbonate after processing at the Rincon Mining plant in Salta, Argentina (Image: Agustin Marcarian / Alamy) Federico Nacif, a lithium specialist at the National Scientific and Technical Research Council (CONICET), says that “the first thing that should be regulated are the projects that are currently underway. In any case, the plans to produce lithium with a state-owned company could take effect in eight years’ time.”
Nacif and other specialists argue that lithium should be removed from the scope of Argentina’s mining investment law and declared a strategic resource. But as a federalised country, in which provinces have control over their resources, moving in that direction would entail considerable political conflict.
Electromobility in Argentina In the short term, the government is expected to send a bill to Congress to promote electromobility. The details are not yet known, but it would seek to encourage the industrialisation of lithium, as well as the manufacture of EVs with domestically made components, and expanding the market for sales of these new models.
To this end, the province of Jujuy and the national government signed a memorandum of understanding (MOU) with Ganfeng Lithium to study the installation of a lithium battery factory, while the national government agreed a further MOU with another Chinese company, Jiangsu Jiankang Automobile, to produce urban EVs and batteries in Argentina.
The promotion of electromobility is a bone of contention with car manufacturers, who warn that the possibility of mass production of EVs in the country is remote, as Brazil, the main buyer, does not seem to be transitioning towards electric cars but hybrids, in order to take advantage of their large resources of ethanol as a fuel. In addition, carmakers argue that the Argentine industry specialises in the manufacture of utility vehicles, which do not adapt well to current electric technology given their power and range requirements. They are therefore pushing for the first step to be support for hybrids that combine petrol or gas with electric.
In the short term, the market for EVs could open up in public transport and by importing certain vehicles for urban use. Chinese companies appear to be the only actors capable of setting up factories, but questions arise as to the degree that these will link with and benefit local industry.
Of course there is debate over which administration is at fault for all of the pain that we are creating for ourselves, but again that's better discussed on a just politics or policy board due to it would get in way too much off topic for the LAC board.
There is so much talk about North American gov policies (US policy and gov especially), but I would argue that South American gov policies (especially Argentina) would have as much as and even more direct effect on LAC and should be heavily considered and analyzed with LAC and not so much with US policy or admin. Along with that fact, is that this move to a more sustainable environment is a world involvement and it is argued that the US isn't even the leader in market share, but nevertheless is only part of the whole.
A couple of articles to that effect (there are many) follows.
On October 5, 2021, the leading provinces of the lithium industry in Argentina, Salta, Jujuy, and Catamarca, signed the interprovincial treaty (the “Treaty”) which creates the Lithium Mining Region to promote the economic and social development resulting from the extraction, production, industrialization and commercialization of the mineral, its products, and derivatives.
The interprovincial treaties are provided in article 125 of the National Constitution as an instrument that enables the provinces to create regions for the economic and social development and establish the competent bodies to fulfill their purposes.
In this context, the Regional Lithium Committee (Mesa Regional del Litio) was created as a result of prior efforts to establish a forum to outline uniform strategies, encourage regional competitiveness and investments, and develop the supply chain of lithium. It will serve as a common space for the academic, institutional, and corporate sectors to discuss the applicable regulations and standards as well as the lithium’s price evolution in the local and foreign markets. The federal government has endorsed the initiative and integrates the Regional Lithium Committee.
Thus, the joint efforts of the three neighboring provinces that have a prominent role in the lithium sector will create the appropriate conditions to promote investments across the Lithium Mining Region by setting clear rules and stable regulations.
Argentina is the fourth world lithium producer and could become the main world’s producer due to its large existing reserves and a favorable legislation which provides a limited intervention of the State. Moreover, there is an increased demand for lithium due to the global need for electric transportation and renewable energies, among others, in accordance with the international agreements. Hence, the Treaty can increase Argentina's potential to become the first global lithium provider.
Finally, the Treaty will enter into force after being ratified by the legislatures of the signatory provinces and approved by the National Congress. It should be noted that on November 16, 2021, the Chamber of Deputies of the Province of Salta passed the law approving the Treaty.
I don't believe it. You just noted a positive outlook for LAC!
There were some top players in the dot.com era and all the little players were either bought up or overcome and bankrupt. Now look at where the top players are now and how much they are worth. Of course that's true with many of the things that are "hot" in the market.
Fads change and the big players take out the small players. EVs will overtake the CEs, just not as fast as the ones creating the "fad" want or expect, but still will happen just like the internet and dot.com took over our way of life today. Just evolution of humanity.
LAC is one of the top players in lithium and will be part of the ever changing evolution away from CE's and into more sustainable environments while the smaller players disappear. EV's will not disappear just like the internet didn't and only grew and advanced exponentially and is continuing to. EV's will be the same.
Also right now, there are many overrated, overpriced, and fad play stocks. Eliminating many of those factors is what they call a correction and a bear market which you have the start of going on right now. The market will use any excuse to get to those means, but the underlining cause is the irrational exuberance over basic stock analysis.
Cramer on CNBC with David right now saying entire EV field is overburdened- too many players in it, many will go the way of dot.coms late 90's... anything EV related is basically a fad here, regardless of news of Toyota here in NC building battery plant.
Hear hear!!! Lets keep it about our favorite lithium ticker $LAC, there are plenty of great things coming our way! There isn't a world leader anywhere that can change the fact that major companies are investing BILLIONS of dollars into EV, solar, wind, and energy storage. Lithium is required for all of the above. Everything gets choppy in the winter, its tax time peeps. $LAC long and strong
Not when it pertains to the entire US corporate structure today, where Insiders sell shares to enrich themselves which is what I am now seeing going on here as well...
Nothing to do with supporting invested shareholders or the like as it once used to be decades ago...
Deutsche Bank on Key Takeaways from Lithium and Battery Materials Annual Conference 2021-12-13 09:30:14 AM ET (MT Newswires)
09:30 AM EST, 12/13/2021 (MT Newswires) -- Deutsche Bank said Monday that lithium pricing expectations into 2022 was overly bullish across all participants at its 2021 Lithium and Battery Materials Annual conference last week, with no signs of demand or pricing slowdown in the near-to-medium term.
During the conference, the largest and most relevant companies in the lithium space discussed pricing expectations as well as challenges around new supply and geopolitical risks.
Looking back over the last five years, while the industry has experienced a couple of bearish and bullish cycles, this time it seems different with the market potentially turning into a supercycle, according to Deutsche Bank.
I know I was ready to get ready by the end of last year when I realized what the previous administration was creating, causing, and starting. It was obvious to me what was going to transpire with inflation (it was already started). Not sure about everybody else. But again, what policies and actions certain political factions caused and how they continue to focus on degrading the people's financial abilities are for another board. Suggest going to a just politics board maybe or other place to discuss inflationary subjects.
But inflation, Covid Wars, different countries government policies, etc effect every stock for the most part. This is a LAC board, how SPECIFICALY will it effect LAC other than general fact that ALL companies are effected in an overall way.
As far as I know Musk selling shares or the fact he got an OK from the public (not that he needed that) doesn't have anything to do with LAC. Maybe that's a comment and discussion for that board, just a thought.
Also, I would say that is adhering to full disclosure, something I like to see. Unlike some other scam SPAC stocks that we see for example. Talk about insider enrichment, fraud, and lack of ANY disclosures, oh boy, examples like that are in the extreme.
They went all the way then baby.... See what these Insiders do with all the free $$$.. Buy more land??? You or I will never benefit from that- ONLY the Insiders will. Building personal wealth exponentially...
November 30, 2021 – Vancouver, Canada: Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) today announced that it proposes to offer US$225,000,000 aggregate principal amount of convertible senior notes due 2027 (the “Notes” and the “Offering”), subject to market conditions and other factors. The Company intends to grant the initial purchasers of the Notes an option to purchase up to an additional US$33,750,000 aggregate principal amount of Notes, exercisable in whole or in part at any time until 30 days after the closing of the Offering.
LAC just increased "Offering" from its original filing now:
December 9, 2021 – Vancouver, Canada: Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) today announced that the initial purchasers under its previously announced offering of US$225,000,000 aggregate principal amount of 1.75% convertible senior notes due 2027 (the “Notes” and the “Offering”) have exercised, in full, their option to purchase up to an additional US$33,750,000 aggregate principal amount of Notes (the “Over-Allotment Option”), increasing the total Offering size to US$258,750,000.
All I see are private inner circle enrichment dealings going on plain as day now, land acquisitions, et.al just like any number of MJ type plays had bee doing out there... They lost their luster for me looong ago when i started to see this occur...
Have some comfort in that short term losses (little pain) for long term gains (lot of pleasure) has been effectively used for success many times and will be many times more. Dragging things out just makes us endure more heartache for longer. Nothing profound about that, just the way it is.
And good luck to you and all. On the other side of that, might be best if all the "news" is all at once. Like pulling the band-aid off quick, rather than dragging it out. I've had liquidity earning practically nothing for over six months with watching the irrational exuberance continuing for way too long in my view. About time for me to have a new dressing, long overdue. So I welcome it, just have to figure out what the end of it is, and when the reversal is on its way. Only the BigBoyz know, we peons are always late after their moves, picking up the scraps. LOL
It is unfortunate that a bunch of negative news are hitting together (e.g., virus, inflation, debt ceiling, jobs,….). Nevertheless, I am glad I recently sold a few shares of LAC and other companies to get cash. I bought back a few in LAC and will buy more if we go below $30. My majority of assets are safe, so I am not worried even though it is never fun to see negative news. There may be great buying opportunities.coming while exercising caution. GLTAH and a good weekend too!
If it breaks the 150, which probably will do if this "redistribution of assets" continue, which I think it will, the next support at 135 you think. Seems to be what is the determining factor is the general market conditions with most stocks, and not anything to really do with any individual stock factors. Same here with LAC. The only way IMO to fill that $25 gap and below, is if the general market takes it there. Might take a month to do it though, if it goes there. The Big Boyz won't allow for that kind of instant drop I don't think, unless something comes about that they won't have a choice in the matter and lose control. Which always is a possibility I guess, but not probable I don't think. A decent correction and more of reality to what things are worth would be the SPY for example to go to 400-420 somewhere. That may seem drastic, but not really in the whole scheme of things.
Frauds of yesterday, in which I don't see LAC acting like at this time, and are less concerning than the frauds of today and tomorrow. I'm hoping that we don't see the whole future market (including LAC) going to something more than just an anomaly.
20th Anniversary of ENRON scandal today.
Perhaps this is only a temporary anomaly without far-reaching effects. But there is also the risk that it is a harbinger of a new means of fleecing credulous investors. Against deliberate fraud and misconduct, regulators have an arsenal of weaponry. But against willful self-delusion and disregard of market realities, they stand powerless.
I would be more worried if LAC was designed as or turned into something like described from a former SEC fraud prosecutor. Since LAC wasn't designed or started like the example fraud listed in that article and that hope is that EVERY company's recent common market behaviors isn't like that fraud (not sure why one would be so concerned about just LAC and not the entire market group that behaves the exact same way, the behavior of how the general market works). Some people might have priorities in the wrong place or they are just nefarious in nature, not sure which. I'm not as concerned about normal market operations of LAC, but agree with that we do have to be concerned about frauds like Enron and fraud SPAC's such as these. It doesn't really seem like LAC has got any of the behaviors matching up with either at this point.
20th Anniversary of ENRON scandal today. Let's hope LAC's recent behavior is not building into something like that...
The initial conversion rate for the Notes will be 21.2307 Shares per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$47.10 per Share. The initial conversion price of the Notes represents a premium of approximately 35% to the last reported sale price of the Shares on the New York Stock Exchange (the "NYSE").
The Company intends to use the net proceeds from the Offering to repay its indebtedness, including the US$205 million senior secured credit facility, and for general corporate purposes.
All I did was post the actual document highlighting the dates in question that were being discussed. The "news" was actually discussed way before today when the discussion was on the acquisitions. Expected "news" way before last night or this morning. The "carefulness" in the market has been discussed for over 6 months now. Catching up might be in order.
Lithium Americas Announces Offering of US$225 Million Convertible Senior Notes
November 30, 2021 – Vancouver, Canada: Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) today announced that it proposes to offer US$225,000,000 aggregate principal amount of convertible senior notes due 2027 (the “Notes” and the “Offering”), subject to market conditions and other factors. The Company intends to grant the initial purchasers of the Notes an option to purchase up to an additional US$33,750,000 aggregate principal amount of Notes, exercisable in whole or in part at any time until 30 days after the closing of the Offering.
The Notes will be unsecured and will accrue interest payable semi-annually in arrears and will mature on January 15, 2027, unless earlier repurchased, redeemed or converted.
The Notes will be convertible at the option of holders, prior to the close of business on the business day immediately preceding October 15, 2026, only under certain circumstances and during certain periods, and thereafter, at any time until the close of business on the business day immediately preceding the maturity date. Upon conversion, the Notes may be settled, at the Company’s election, in cash, common shares (“Common Shares”) of the Company or a combination thereof. The Notes will not be redeemable at the Company’s option prior to December 6, 2024, except upon the occurrence of certain tax law changes. On or after December 6, 2024, the Notes will be redeemable at the Company’s option if the last reported sale price of the Common Shares has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
If the Company undergoes a fundamental change, holders of the notes will have the right to require the Company to repurchase for cash all or a portion of their notes at 100% of their principal amount, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Company will also be required, in certain circumstances, to increase the conversion rate for a holder who elects to convert its notes in connection with certain corporate events or during a redemption period.
The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Offering.
Completion of the Offering will be subject to various conditions, including the approval of the Toronto Stock Exchange (the “TSX”) and the New York Stock Exchange (the “NYSE”). For the purposes of TSX approvals in connection with the Offering, the Company intends to rely on the exemption set forth in Section 602.1 of the TSX Company Manual, which provides that the TSX will not apply its standards to certain transactions involving eligible interlisted issuers on a recognised exchange, such as the NYSE.
The Company intends to use the net proceeds from the Offering to repay its indebtedness, including certain amounts owing under its amended and restated credit and guarantee agreement dated July 14, 2017 between the Company (as borrower) and 2265866 Ontario Inc., Lithium Nevada and KV Project LLC (as guarantors), BCP Innovation PTE. Ltd. (an affiliate of Bangchak Public Company Ltd.) and Ganfeng Lithium Co. Ltd. (as lenders), BNY Trust Company of Canada (as the administrative agent for the lenders) and The Bank of New York Mellon (as the U.S. Collateral Agent for the lenders), and for general corporate purposes.
The Notes will be offered on a private placement basis and will not be offered by way of a prospectus in Canada, the U.S., or any other jurisdiction. The Notes and the distribution of Common Shares issuable upon conversion of the Notes have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. The Notes will be offered (i) to persons
reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and (ii) outside the United States to non-U.S. persons in reliance on Rule 903 of Regulation S under the Securities Act, and, in the case of offers in Canada, to persons who are “accredited investors” and “permitted clients” within the meaning of Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in the United States or in any other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration and qualification under the securities laws of such state or jurisdiction. The Offering may be made only by means of an offering memorandum.
ABOUT LITHIUM AMERICAS
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States. Lithium Americas trades on both the Toronto Stock Exchange and on the New York Stock Exchange, under the ticker symbol “LAC”.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain statements in this release constitute “forward-looking statements” within the meaning of applicable United States securities legislation and “forward-looking information” under applicable Canadian securities legislation (collectively, “forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the Company’s current expectations regarding future events, financial or operating performance and results, and speak only as of the date of this release. Such statements include without limitation, the Company’s expectations with respect to the form and terms of the Offering, completion of the Offering, and the expected use of proceeds therefrom.
Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, risks related to the Company’s ability to consummate the Offering on the terms described or at all; the fact that the Company’s management will have broad discretion in the use of certain of the proceeds from the Offering; uncertainty regarding the stable and supportive legislative, regulatory and community environment in the jurisdictions where the Company operates, or the enforcement of such laws and regulations by the applicable authorities; the failure of parties to contracts with the Company to perform as agreed; social or labour unrest; risks relating to general economic conditions; changes in commodity prices, including the market price of lithium; the impact of COVID-19 on the Company’s business; anticipated timing and results of exploration, development and construction activities; and the Company’s ability to develop and achieve production at any of the Company’s mineral exploration and development properties, and to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Additional information about these assumptions and risks and uncertainties is contained in the Company’s filings with securities regulators, including the Company’s most
recent annual information form and most recent management’s discussion and analysis for our most recently completed financial year and interim financial period, which are available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Although the forward-looking statements contained in this release are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.
Right now LAC is duplicating last night. Bouncing off that support, took my bids at $35.54 US that I had sitting there. We'll see if it holds for now, but I think we have a lot more volatility to come for a few months. So you could be right on that around 30 number. Anyone should be and should have been ready for this scenario. Good luck to all.
I picked a few after selling a few at $40.5, so I feel good about my move. I think it is possible we may go to the low $30s or even the high $20s, but it does not concern me as I believe that the lithium sector will remain hot for years to come. If we stay in the mid $30s, we will see the $40s again in no time.
As for the offering, I have not read it in detail yet, but my understanding is that the extra shares will not be released all at once, but in years to come when the price will probably be much higher (I read 2026, but I could be wrong). I would appreciate if someone has better information, but it looks like smart dilution to me.
Anybody else pick up any shares last night ah? Picked a bunch below $36. Made for some nice trades this morning. It bounced around showed a support about there US side. Maybe that will be the support for the "Big Dip" or whatever it will be called or if even the market does much anything more than what it's done the past week of trading. The money that has/is being taken out will of course come back in at some point. The Big Boyz won't just sit on the money not making their take for long and the Market will do what it has always done.
News Flash. All companies that are listed and even some that aren't sell stock. Even when the GOP gives them our money to buy stock previously owned back. They will just sell them again later. Lending is done with stock as collateral. That's why they call it a stock market. LAC isn't any different than any other as far as selling stock. One of the ways we value worth of a company by their market cap with a main number in the equation being how many shares they have.
As with any ticker, there is dilution coming in, dilution growing, dilution going forward. How any company manages that system, what is believed to be the result at a future time, or whether any trading can be profitable is where the attention should go. Works out a lot better working with the system that we don't have much power to change. Can't change the demand for Lithium or change the need for abilities to supply that demand. Again, I'll have to wait 6 months at least to assess the results of LAC's dilution and pps at that time. At this time, I don't see anything that will stop LAC turning into a profitable venture or stock to own and trade.
Got a link to show all of the $LAC insiders are selling or is this just fluff to support the rest of the gloom and doom predictions. So if Bezos, Musk, Zuckerberg, Walmart heirs are selling, does that mean you should too? Lets stay on topic, you need to turn off the TV. I believe that $LAC is a good investment long, its sure has been so far. $LAC long and strong
One thing, Faux news isn't a reputable source, so you can't be sure of any numbers being correct or complete. But, I do believe that due to the Republican Tax Corporate giveaways which led to the actions of hyping up with upgrades all over and insiders utilizing those GOP and Trump giveaways enabling the insiders to do the work as you described. Why would they want to give back of which they didn't deserve and now you see them wining about their having to give their free corp welfare checks and all the insiders looting back. I didn't expect anything else and what little of Biden's policies claw back (rightfully so) won't even amount close to what all the insiders have gained.
But that has always been the way the stock market has worked. The house always wins. But it is getting a bit carried away and harder for small retail to work with it. I've only experienced more ease working with LAC than most under their system. The stock is worth what somebody is going to pay, seems like generally LAC is worth it to many more.
We also expected, at least anyone who is paying any attention to LAC, that some sort of dilution or debt would be happening. No surprise there. Your either for or against LAC acquisitions, either own or not, every ones choice.
Another Offering filed with SEC last night! Here we go again...
Big hyped upgrade to pull in retailers while insiders sell preferred stock en masse before end of year.
Fox Biz this am reported something like $68 Billion was sold by Insiders this year alone to get out before new Biden tax plans go into effect 2022... Just the top 4 (Bezos, Musk, Zuckerberg, Walmart heirs) took out over 40% of that amount of $$$ from their companies ....
.03 shy of 41 for a high so far. Also it stayed pretty steady Fri when most of the market was taking a pretty good hit. Just a short time ago there was discussion of where the support would be projecting above 30 somewhere. Well, I guess it's above $30. LOL
Yep, that’s the idea. I sold a few at $40.5. I needed a bit of money for another play, but I may also reinvest in LAC if it drops. My core position is intact so I will benefit if this goes to $50 or higher. GLTAH
Great plan! I am thinking of doing the same as well, as its up 14%. If the price pullbacks, we buy the shares back plus profits. If the price continues to rise, we still win with our core holdings. Win-win situation.
Pretty much. The Street is liking these transactions, as the share price reached a new all time high. Once production and Li are sold in the open market, earnings will flow in. Most companies don't see a profit until years into their business. LAC is no different, except there is a demand of Li going into EVs.
Lithium Americas Increases Strategic Interest in Arena Minerals 2021-11-25 08:15:37 AM ET (GlobeNewswire)
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium Americas" or the "Company") announces that on November 24, 2021 the Company purchased 23,369,003 common shares (the "Arena Shares") of Arena Minerals Inc. (TSX-V: AN) ("Arena Minerals") at a price of C$0.54 per share through an alternative market transaction for aggregate consideration of approximately US$10 million (the "Purchase"). The Arena Shares represent 6.3% of the issued and outstanding common shares of Arena Minerals as of close of market on November 24, 2021.
Prior to the Purchase, Lithium Americas beneficially owned 42,857,143 common shares, representing approximately 11.6% of Arena Mineral's issued and outstanding share capital on a non-diluted basis, and 21,428,571 share purchase warrants ("Warrants"). Following the Purchase, Lithium Americas beneficially owns 66,226,146 common shares of Arena Minerals, representing approximately 18.0% of Arena Mineral's issued and outstanding common shares on a non-diluted basis, and 21,428,571 Warrants.
The additional investment in Arena Minerals further reinforces Lithium Americas' commitment to the region and the Company's long-term resource development plans in Argentina. Arena Minerals' Sal de la Puna lithium brine project, together with the immediately adjacent Pastos Grandes lithium brine project owned by Millennial Lithium Corp. ("Millennial"), provides future optionality in proximity to the Company's Cauchari-Olaroz lithium project, establishing Lithium Americas as a premier lithium brine developer in Argentina.
The Company is acquiring the securities for investment purposes. Depending on market conditions and other factors, Lithium Americas may, from time to time, acquire additional common shares, Warrants or other securities of Arena Minerals or dispose of some or all of the common shares, Warrants or other securities of Arena Minerals that it owns at such time. The Company has signed an undertaking not to exercise the Warrants until such time as the Company can obtain disinterested shareholder approval of the creation of a new control person by the shareholders of Arena Minerals, which is required once the Company passes the 20% ownership threshold. An early warning report will be filed by Lithium Americas on SEDAR at www.sedar.com in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact the Corporate Secretary of Lithium Americas at 778-656-5820 or legal@lithiumamericas.com.
Pursuant to the subscription agreement between the Company and Arena Minerals dated July 12, 2021, the Company expects to appoint Ignacio Celorrio as its nominee to the Arena Minerals' board of directors. Mr. Celorrio currently serves as President, Latin Americas for Lithium Americas and has extensive experience working in the Argentine mining industry.
About Arena Minerals
Arena Minerals owns 65% of the Sal de la Puna Project covering approximately 11,000 hectares of the Pastos Grandes basin located in Salta, Argentina. The claims are highly prospective and share the basin with two advanced lithium brine projects. In addition to Sal de la Puna, Arena owns the Antofalla lithium brine project in Argentina, consisting of four claims covering a total of 6,000 hectares of the central portion of Salar de Antofalla, located immediately south of Albemarle Corporation's Antofalla project. Arena has developed a proprietary brine processing technology using brine type reagents derived from the Antofalla project with the objective of producing more competitive battery-grade lithium products. The head office of Arena Minerals is located at 1410 - 120 Adelaide Street West, Toronto, ON, Canada M5H 1T1.
About Lithium Americas
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States. The Company trades on both the Toronto Stock Exchange and on the New York Stock Exchange, under the ticker symbol "LAC". The head office of Lithium Americas is located at 300 - 900 West Hastings Street, Vancouver, BC, Canada V6C 1E5.
Not all of us have the benefit of the employer sponsored 401k and a 401k still isn't tax free they just make you think it is, they will get it on the back side. The ability to defer income taxes has no benefit when the participant is subject to the same tax rates in retirement as when the original contributions were made or interest and dividends earned, if played correctly it just avoids capital gains. The Canuck solution is better for the investor. $LAC long
News 
Market Data 
Discover 
