The Canadian mining company Lithium Americas, which owns the Pastos Grandes lithium project in Saltapresented an offer for the purchase of all the shares of Arena Minerals, a company which in turn owns 65% Salt of the Punaa project alongside Lithium.
The transaction will be completed through a stock swap and merger that will bring Arena’s current shares to approximately 5.7 percent of Lithium Americas. The value of the transaction is US$ 227 million.
Even if the board of directors of Arena has already pronounced on the convenience of the offer, the operation must be ratified by its board of directors for the final approval of its shareholders. Something that can last three to six months, they estimate in the industry.
That first “acceptance” of the terms of the operation by Arena is what, in jargon, is called “friendly takeover”. However, “it conducts legal processes that end with the vote of the shareholders. It must have a 66% majority to pass.
“This synergy to consolidate the two projects generates a very important interest for us because it involves high investments, especially in the construction of the pools and the plant”, said Ignacio Elorrio, president of Lithium Americas for Latin America about the project which aims to produce 10 thousand tons of “battery grade” lithium carbonate.
Lithium Miner bought the Pastos Grandes project last year and now, with the approval of the share swap with Arena, plans to begin its construction in mid-2023. Previously, it was also placed in the project cauchari olarozalso lithium, which today is Under construction.
Jonathan Evans, President and CEO of Lithium Americas, said the synergy between the two projects will advance development planning and maximize growth in Argentina.
“The timing of the transaction is in line with the company’s previously announced plan to separate into two public companies in 2023and major project development activities are expected in both businesses early next year,” he said.
The company will be divided, on the one hand, into Lithium International, which will combine its Argentine assets (Caucharí-Oraloz in Jujuy, and Pastos Grandes, in Salta) and Lithium Americas, which will keep its North American assets (projects in Nevada and others). .
Beyond the lithium boom that is being experienced in several countries due to electromobility, Elorrio explained, Argentina has a great advantage because It has undergone a process of mineral exploration for a decade.
“Today there are 4 or 5 projects that can be developed simultaneously because exploration is advanced. Although it is a market in formation, Argentina has a predominant position as a producer of lithium carbonate,” he said.
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Source: Clarin
