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Lithium Americas Announces Initial Closing of $650 Million Investment from General Motors

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Lithium Americas Announces Initial Closing of $650 Million Investment from General Motors

 

 

 

 

 

Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) announced the closing of the initial tranche, an investment of $320 million, of its previously announced $650 million investment by General Motors Co. (NYSE: GM). Proceeds from GM’s investment are to be used to accelerate the development of the Company’s Thacker Pass lithium project located in Humboldt County, Nevada, the largest known lithium resource in the United States that is fully permitted to begin construction.

 

“The beginning of construction at Thacker Pass is imminent following last week’s favorable ruling on the Record of Decision and the closing of GM’s initial investment,” said Jonathan Evans, President and CEO of Lithium Americas. “GM’s investment is a landmark transaction that will help put millions of drivers into electric vehicles while creating jobs and a strong and secure U.S. supply chain for EV raw materials.”

 

GM is now Lithium Americas largest shareholder and offtake partner. Lithium Americas continues to pursue a commitment from the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing Program, which will help scale lithium production at Thacker Pass to support production of nearly one million EVs annually.

 

As previously disclosed, GM is making a $650 million equity investment in the Company in two tranches. In connection with today’s initial closing, GM has purchased 15 million common shares of the Company at a price of $21.34 per share for gross proceeds of $320 million. The Company expects to close the second and final tranche following the Company’s contemplated separation of its U.S. and Argentine businesses in the second half of 2023 and the satisfaction of certain conditions precedent to closing. For the final $330 million investment, GM has agreed to subscribe for shares in the U.S. business based on the then market price on the date of subscription, subject to a cap of $27.74 per share (adjusted for the separation).

 

The parties have also completed the additional transactions contemplated to occur concurrent with the closing of the initial tranche, including execution of the offtake agreement, investor rights agreement and second tranche subscription agreement, as well as issuance of the second tranche alternative exercise warrants.

 

All figures presented are in U.S. Dollars.

 

FURTHER INFORMATION

 

For full details on the GM investment, refer to the Company’s news releases dated January 31, 2023. For more details about the separation, please refer to the Company’s news release dated November 3, 2022. Further information is also contained in the Company’s material change report dated February 7, 2023 and the master purchase agreement dated as of January 30, 2023 previously filed on www.sedar.com and www.sec.gov.

 

ABOUT LITHIUM AMERICAS

 

Lithium Americas is focused on advancing lithium projects in Argentina and the United States to production. In Argentina, Caucharí-Olaroz is advancing towards first production and Pastos Grandes represents regional growth. In the U.S., the Company’s Thacker Pass project will soon be advancing towards construction.

Posted February 17, 2023

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