Lithium Americas Acquires Canada’s Arena, Secures Access to Argentina Mine
- December 21, 2022
- Posted by: Quatro Strategies
- Category: Mining
Vancouver-based Lithium Americas is acquiring all the shares it does not own in Canada’s Arena Minerals in a deal that will give the company greater access to the Pastos Grandes basin in Argentina. The transaction values the target company at $227 million. Lithium Americas looks to combine two neighboring projects in the Pastos Grandes basin located in the lithium triangle. The company expects production to start at the site in the first half of 2023.
“The significant synergies between our two projects and a better understanding of the basin will enable us to advance development planning and maximize our growth pipeline in Argentina,” Lithium Americas CEO Evans said in a statement.
The deal is expected to finalize in the third quarter of 2023. Lithium Americas is in the midst of a business transformation, which will see the company separate its North and South American operations into two independent public companies.
The new Lithium Americas company will own the Thacker Pass lithium project in Nevada and investments in Green Technology Metals and Ascend Elements.
The other company, Lithium International, will focus on the Argentina assets, the company said in November. Argentinian projects include Caucharí-Olaroz and Pastos Grandes.
China’s Ganfeng Lithium, GFL International and their affiliates collectively own about 16% of Arena’s outstanding shares as well as warrants that if exercised would represent a further 6% stake.
Lithium Americas said Ganfeng has entered an agreement to dispose of all of its securities of Arena prior to the merger closing.
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