trending Market Intelligence /marketintelligence/en/news-insights/trending/kMNtkqYi6xjZdi6UTTUoKQ2 content esgSubNav
In This List

Lithium Americas closes US$172M funding deal with Jiangxi Ganfeng unit

Blog

Insight Weekly: Unease roils markets; US likely to slip into recession; firms' cash ratios fall

Blog

Insight Weekly: Bank boards lag on gender parity; future of office in doubt; US LNG exports leap

Blog

Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Blog

Insight Weekly: Loan growth picks up; US-China PE deals fall; France faces winter energy crunch


Lithium Americas closes US$172M funding deal with Jiangxi Ganfeng unit

Lithium Americas Corp. said June 7 that it has closed a US$172 million funding deal with Jiangxi Ganfeng Lithium Co. Ltd.'s GFL International Co. Ltd. unit, making the Chinese firm the largest Lithium Americas shareholder with a 19.9% stake.

The funding agreement, announced in January, comprised the sale of 75 million common Lithium Americas shares at 85 Canadian cents each, totaling US$47 million to the Chinese firm, and a US$125 million credit facility.

Apart from the placement and credit facility, the deal also covers an off-take agreement for the purchase and sale of lithium products.

According to Lithium Americas CEO Tom Hodgson, the closing of the investment agreement places the company in a strong financial position and will allow for the start of construction at its Cauchari-Olaroz lithium joint venture in Argentina with Sociedad Quimica y Minera de Chile SA.

A definitive feasibility study for the first stage of the Cauchari-Olaroz project estimated a construction CapEx of US$425 million, with payback in three years and five months.