Aug. 24 at 11:26 AM
$LAR Lithium Argentina gets
$180M investment from, joint venture with Ganfeng Lithium
Lithium Argentina and Ganfeng Lithium announced they have entered into definitive agreements to finalize the new joint venture consolidating the Pozuelos-Pastos Grandes projects in Salta Province, Argentina. Concurrently, Ganfeng has agreed to invest
$180M in Lithium Argentina through a six-year unsecured convertible note with a 4% coupon and convertible into Lithium Argentina's common shares at
$12.50 per share.
The conversion price represents a premium of approximately 96% to the five-day volume-weighted average price of the company's common shares on the NYSE for the period ending August 21. Proceeds, together with cash on hand, are intended to be used to fully repay the Company's
$259M convertible debt due January 2027, extending the company's debt maturity profile on an unsecured basis and strengthening the balance sheet. Ganfeng and Lithium Argentina hold 67% and 33% of the joint partnership, respectively.
