Lithium Americas provides details on its transaction with General Motors
by CM Staff
GM has agreed to make an aggregate investment of $650 million in two tranches.
VANCOUVER — Lithium Americas Corp. announced that it has entered into a purchase agreement with General Motors Co. pursuant to which GM will make a $650 million equity investment in Lithium Americas. In connection with the Transaction, the Company has provided an update on the construction plan for the Thacker Pass lithium project in Humboldt County, Nevada , including the release of an independent National Instrument 43-101 feasibility study.
Further details on the Transaction are reported in a joint release issued on Jan. 31 by the Company and GM. All figures presented are in U.S. Dollars.
TRANSACTION HIGHLIGHTS:
- The largest-ever investment by an automaker to produce battery raw materials, with GM to become Lithium Americas’ largest shareholder.
- Lithium Americas to receive $650 million equity investment from GM consisting of:
- $320 million first tranche investment for common shares representing 9.999% of Lithium Americas before separation; and
- $330 million second tranche investment, contemplated to be invested in the Company’s U.S. business following the separation of its U.S. and Argentine businesses.
- After the first tranche investment, GM will receive exclusive access to Phase 1 production through a binding supply agreement and a Right of First Offer on Phase 2 production.
- Investment supports the development of Thacker Pass, the largest known lithium resource in the U.S.
- Project estimated to supply lithium needed for up to one million electric vehicles per year.
- Investment also supports the Company’s previously announced Separation by creating the foundation for an independent U.S. business focused on Thacker Pass and a North American lithium supply chain.
GM has agreed to make an aggregate investment of $650 million in two tranches. In tranche 1, GM will acquire 15.0 million common shares of Lithium Americas at a price of $21.34 per share, for gross proceeds of $320 million.
Lithium Americas has agreed to use the proceeds from the Transaction for the development of Thacker Pass.
