VANCOUVER, British Columbia, July 12, 2021 (GLOBE NEWSWIRE) -- Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium Americas" or the "Company") announced that it has entered into an agreement to acquire 42,857,143 subscription receipts of Arena Minerals Inc. (TSX-V: AN) (“Arena Minerals”) in a private placement at C$0.14 per subscription receipt for total consideration of C$6.0 million (US$4.8 million).
The strategic ownership in Arena Minerals will provide Lithium Americas future optionality to advance exploration in Argentina in proximity to the Caucharí-Olaroz lithium project (“Caucharí-Olaroz”), which is being jointly developed by the Company and Ganfeng Lithium Co. Ltd. ("Ganfeng"). Ganfeng also holds a 18.7% equity investment in Arena Minerals. Both Lithium Americas and Ganfeng are expected to leverage their deep technical and operational experience to support Arena Minerals’ exploration and development opportunities in Argentina, including the Sal de la Puna project.
"We look forward to working with Arena Minerals and Ganfeng to support the pursuit of resource exploration opportunities in Argentina," commented Jon Evans, President and CEO. "This investment will allow Lithium Americas to advance our long-term resource development plans, while maintaining our team’s focus on execution at Caucharí-Olaroz and the Thacker Pass project.”
The investment is part of a C$10 million non-brokered private placement of subscription receipts of Arena Minerals (the “Offering”). The proceeds of the Offering will be applied by Arena Minerals to the acquisition of the Sal de la Puna lithium brine project in Salta, Argentina, exploration and development expenditures on the Company's lithium assets and for general corporate purposes. Lithium Americas currently does not hold any securities of Arena Minerals. On closing, assuming completion of the full $10 million offering by Arena Minerals, the Company will own approximately 12.9% (14.6% on a fully diluted basis) of the issued and outstanding shares of Arena Minerals.
Pursuant to the agreement, Lithium Americas has the right (i) to participate in future Arena Minerals financings to maintain its pro rata ownership interest in Arena Minerals; and (ii) to appoint a nominee to the Arena Minerals board of directors. These rights are conditioned on Lithium Americas maintaining an ownership interest in Arena Minerals of 7.5% and 10.0% of Arena Minerals’ share capital, respectively.
Upon closing, each subscription receipt will be exchanged for one common share of Arena Minerals, and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share of Arena Minerals at C$0.25 for a period of 24 months from the date of issuance. If Arena Minerals’ acquisition of Sal de la Puna is not met by August 15, 2021, the proceeds of the Offering will be returned to the holder.
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, common share purchase warrants or other securities of Arena or dispose of some or all of the common shares, common share purchase warrants or other securities of Arena that it owns at such time. 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.
About Arena Minerals
Arena Minerals Inc. (TSX-V: AN) is an exploration-stage lithium company focused on developing brine resources in Argentina. Arena Minerals’ team has extensive experience in lithium exploration and development, including the discovery and development of the Salar de los Angeles lithium brine project in Argentina, which was acquired in 2018 for C$265 million. Arena Minerals owns the Antofalla lithium brine project in Argentina, consisting of claims covering a total of 6,000 hectares in the central portion of Salar de Antofalla, located immediately south of Albemarle Corporation's Antofalla project. Arena Minerals has recently agreed to acquire the Sal de la Puna project in Salta, Argentina
