On July 8, Lithium’s stock was at $13.22. Nevertheless, it is gaining momentum: today, the stock reached $15.6, which results in an 18% boost. The company announced that it has entered into an agreement to acquire 42,857,143 subscription receipts of Arena Minerals (TSX-V: AN) for total consideration of US$4.8 million.
The strategic ownership of Arena Minerals will provide Lithium America with the opportunity to develop future exploration in Argentina in close proximity to the Cauchari-Olaroz lithium project, which is being jointly developed by the Company and Ganfeng Lithium (“Ganfeng”). Ganfeng also owns 18.7% of Arena Minerals. Both Lithium Americas and Ganfeng are expected to leverage their deep technical and manufacturing expertise to support Arena Minerals’ exploration and development capabilities in Argentina, including the Sal de la Puna project.
Proceeds from the Proposal will be used by Arena Minerals for the acquisition of the Sal de la Puna lithium salt deposit in Salta, Argentina, the exploration and development costs of the Company’s lithium assets, and for general corporate purposes. Lithium Americas does not currently own Arena Minerals securities. At close, subject to the completion of the full $ 10 million Arena Minerals offering, the Company will own approximately 12.9% (14.6% fully diluted) of the issued and outstanding shares of Arena Minerals.
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