Published: November 12, 2021 |

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Lithium Americas has proposed to acquire Millennial Lithium, the owner of the Pastos Grandes lithium brine project in Argentina, for a sum of around $400 million.

As per the terms of the “unconditional offer”, Lithium Americas has offered to pay C$4.7 ($3.79) per share in the form of its shares plus C$0.001 ($0.00081) in cash for each of the shares in Millennial Lithium.

The consideration proposed by Lithium Americas will result in Millennial Lithium’s shareholders owning nearly 9.9 percent of the former.

Lithium Americas is a development-stage company based in Canada. Its projects are located in Jujuy, Argentina and Nevada in the US.

The company’s Caucharí-Olaroz lithium project is nearly 100km away from the Pastos Grandes lithium brine project.

According to Lithium Americas, the addition of a complementary and advanced stage resource considerably expands its growth pipeline in Argentina, without distracting its management from ongoing operations.

“In proximity to Caucharí-Olaroz, Millennial’s 100 percent owned Pastos Grandes lithium brine project represents an attractive regional growth opportunity for Lithium Americas,” said Lithium Americas President and CEO Jonathan Evans.

“As we bring Caucharí-Olaroz into production over the next year and continue to advance our stage 2 expansion planning, the addition of this highly complementary lithium brine resource further enhances our long-term growth strategy in Argentina and leverages our technical and development expertise,” added Evans.

In September 2021, Contemporary Amperex Technology (CATL) signed an agreement to acquire Millennial Lithium for C$3.85 ($3.11) per share in cash, which equates to C$377 million ($304.2 million).

Prior to that, in July 2021, Chinese lithium metals producer Ganfeng Lithium had offered a price of C$3.6 ($2.9) per share or around C$353 million ($284.8 million) in cash to acquire the Canadian company.

However, it was subsequently reported that Ganfeng Lithium had no plans to outbid the offer by CATL.

Millennial Lithium’s board of directors has determined that Lithium Americas’ offer is a superior proposal compared to that of CATL’s bid.

Source: NS Energy

About Lithium Americas
Lithium Americas Corp. operates as a resource company in the United States. The company explores for lithium deposits. It owns interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and Thacker Pass project located in north-western Nevada. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.

To stop by Lithium Americas’ website, CLICK HERE

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