(All amounts in US$ unless otherwise
indicated)
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC)
(“Lithium Americas” or the “Company”) announces the
Company and General Motors Holdings LLC (“GM”) have agreed
to extend the outside date for the second tranche subscription
agreement until the end of the year. Along with the extension, GM
has reaffirmed its intention to complete the additional $330
million investment to support development of Thacker Pass, which is
the largest known Measured and Indicated lithium resource in North
America.
“Our relationship with GM has been built on collaboration and a
mutual goal to develop a robust domestic lithium supply chain,”
said Jonathan Evans, President and CEO of Lithium Americas. “We are
fortunate to have GM’s partnership as we finalize the DOE Loan and
GM investment prior to making the final investment decision later
this year.”
During this time, the parties will explore alternative
structures for GM’s additional investment in a mutually beneficial
manner. As such, the Company has agreed to forbear making a
unilateral election to close the second tranche investment until
December 20, 2024, to provide time for such discussions to take
place. GM’s investment is subject to the conditions precedent set
forth in the second tranche subscription agreement, including the
execution of the loan agreement for the $2.26 billion loan from the
U.S. Department of Energy (“DOE”) under the Advanced
Technology Vehicles Manufacturing (“ATVM”) Loan Program for
which the DOE provided a conditional commitment (the “DOE
Loan”). The unilateral election of the Company to close the
second tranche investment after December 20, 2024, must be
accompanied by the grant to GM of additional rights related to
Phase 21 of Thacker Pass. The Company continues to work closely
with the DOE and expects to close the DOE Loan and additional GM
investment by the end of the year.
BACKGROUND
On January 30, 2023, Old LAC2 entered into a purchase agreement
with GM, pursuant to which GM agreed to make a $650 million equity
investment (the “Transaction”), the proceeds of which are to
be used for the construction and development of Thacker Pass. The
Transaction is comprised of two tranches, a first tranche
investment of $320 million (the “Tranche 1 Investment”) and
a second tranche investment of up to $330 million (the “Tranche
2 Investment”). The Tranche 1 Investment closed on February 16,
2023. On October 3, 2023, pursuant to the Separation, the full
amount of the remaining unspent proceeds of the Tranche 1
Investment were included in the net assets distributed by Old LAC
to the Company.
As the Separation was completed before the closing of the
Tranche 2 Investment, on October 3, 2023, the agreement for the
Tranche 2 Investment in Old LAC was terminated and replaced by a
corresponding subscription agreement between GM and the Company
whereby the proceeds of the Tranche 2 Investment will be received
by the Company.
1 Phase 2 is the second phase of production at Thacker Pass,
targeting an additional 40,000 tonnes per annum (“tpa”) of
battery-grade lithium carbonate, for total production capacity of
80,000 tpa. 2 Old LAC is now named Lithium Americas (Argentina)
Corp., pursuant to a separation transaction that was undertaken on
October 3, 2023 (the “Separation”), when the Company
acquired ownership of Old LAC’s North American business assets and
investments.
ABOUT LITHIUM AMERICAS
Lithium Americas is committed to responsibly developing the
100%-owned Thacker Pass project located in Humboldt County in
northern Nevada, which hosts the largest known Measured and
Indicated lithium resource in North America. The Company is focused
on advancing Thacker Pass Phase 1 toward production; targeting
nameplate capacity of 40,000 tpa of battery-quality lithium
carbonate. The Company and its engineering, procurement and
construction management contractor, Bechtel, entered into a
National Construction Agreement (Project Labor Agreement) with
North America’s Building Trades Unions for construction of Thacker
Pass. The three-year construction build is expected to create
approximately 1,800 direct jobs. Lithium Americas’ shares are
listed on the Toronto Stock Exchange and New York Stock Exchange
under the symbol LAC. To learn more, visit www.lithiumamericas.com
or follow @LithiumAmericas on social media.
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within
the meaning of applicable Canadian securities legislation, and
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995
(collectively referred to as “forward-looking information”
(“FLI”)). All statements, other than statements of
historical fact, are FLI and can be identified by the use of
statements that include, but are not limited to, words, such as
“anticipate,” “plan,” “continues,” “estimate,” “expect,” “may,”
“will,” “projects,” “predict,” “proposes,” “potential,” “target,”
“implement,” “scheduled,” “forecast,” “intend,” “would,” “could,”
“might,” “should,” “believe” and similar terminology, or statements
that certain actions, events or results “may,” “could,” “would,”
“might” or “will” be taken, occur or be achieved. FLI in this news
release includes, but is not limited to, expectations regarding
completion of the Tranche 2 Investment and the DOE Loan;
expectations regarding any alternative structures of the Tranche 2
Investment; the expected timetable for completing the Tranche 2
Investment; expectations related to the construction build, job
creation and nameplate capacity as well as other statements with
respect to management’s beliefs, plans, estimates and intentions,
and similar statements concerning anticipated future events,
results, circumstances, performance or expectations that are not
historical facts.
FLI involves known and unknown risks, assumptions and other
factors that may cause actual results or performance to differ
materially. FLI reflects the Company’s current views about future
events, and while considered reasonable by the Company as of the
date of this news release, are inherently subject to significant
uncertainties and contingencies. Accordingly, there can be no
certainty that they will accurately reflect actual results.
Assumptions upon which such FLI is based include, without
limitation, the completion of the DOE Loan prior to the end of 2024
and the absence of material adverse events affecting the Company
during this time; the ability of the Company to satisfy all closing
conditions for the Tranche 2 Investment and complete the Tranche 2
Investment in a timely manner; as well as assumptions concerning
general economic and industry growth rates, commodity prices,
resource estimates, currency exchange and interest rates and
competitive conditions. Although the Company believes that the
assumptions and expectations reflected in such FLI are reasonable,
the Company can give no assurance that these assumptions and
expectations will prove to be correct.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. There can be no assurance that FLI will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. As such,
readers are cautioned not to place undue reliance on this
information, and that this information may not be appropriate for
any other purpose, including investment purposes. The Company’s
actual results could differ materially from those anticipated in
any FLI as a result of the risk factors set out herein and in the
Company’s filings with securities regulators.
The FLI contained in this news release is expressly qualified by
these cautionary statements. All FLI in this news release speaks as
of the date of this news release. The Company does not undertake
any obligation to update or revise any FLI, whether as a result of
new information, future events or otherwise, except as required by
law. Additional information about these assumptions and risks and
uncertainties is contained in the Company’s filings with securities
regulators, including the Company’s most recent Annual Report on
Form 20-F and most recent management’s discussion and analysis for
our most recently completed financial year and, if applicable,
interim financial period, which are available on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov. All FLI contained in
this news release is expressly qualified by the risk factors set
out in the aforementioned documents.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240829450634/en/
INVESTOR CONTACT Virginia Morgan, VP, IR and ESG
+1-778-726-4070 ir@lithiumamericas.com
Lithium Americas (NYSE:LAC)
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