Argentina Lithium closes $90M investment by Stellantis
by CM staff
As a result of the transaction, Stellantis owns 19.9 per cent of the issued and outstanding ALE shares and Argentina Lithium owns 80.1 per cent.
VANCOUVER — Argentina Lithium & Energy Corp., announces the closing of US$90 million investment in AR$ equivalent in Argentina Litio y Energia S.A. (ALE) by Stellantis, as previously announced in the company’s news release dated September 27.
Pursuant to the transaction, Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V., has invested the ARS$ equivalent of US$90 million in Argentina to acquire shares of ALE. Further, the company has granted Stellantis the right to exchange all of the ALE Shares for up to 19.9 per cent of the outstanding common shares of Argentina Lithium (on an undiluted basis) in the future, subject to certain conditions set out in an exchange agreement. In connection with the transaction, the parties have also entered into a lithium offtake agreement, a shareholders’ agreement with respect to ALE and, upon exercise of the Exchange Right, Argentina Lithium and Stellantis will enter into an investor rights agreement. The proceeds of the Transaction will be used to advance development of the Company’s lithium projects held through its wholly owned subsidiary in Argentina, and for general corporate purposes.
As a result of the transaction, Stellantis owns 19.9 per cent of the issued and outstanding ALE shares and Argentina Lithium owns 80.1 per cent.
