TORONTO (miningweekly.com) – Niche minerals company Lithium Americas has signed an investment agreement with China's Ganfeng Lithium for funding to advance the construction of the Cauchari-Olaroz lithium project, in Jujuy, Argentina.
Ganfeng this week agreed to finance $174-million and the right to buy a fixed portion of the lithium carbonate equivalent (LCE) production from the Cauchari-Olaroz project, as well as a $125-million project debt facility.
Ganfeng is buying 75-million new shares at C$0.85 each for C$64-million, for 19.9% of the company.
The project debt facility has a six-year term, with an interest rate of 8% for the first three years that increases to 8.5% in year four, 9% in year five and 9.5% in year six.
Ganfeng has agreed to buy up to 70% of Lithium Americas' share of Cauchari-Olaroz Stage 1 lithium carbonate at market prices.
Ganfeng is the largest integrated lithium producer in China, with a total capacity of about 30 000 t/y of LCE.
Ganfeng also owns a 43.1% interest in the Mount Marion lithium spodumene project, in Western Australia, with co-owners Mineral Resources (43.1%) and Neometals (13.8%).
Edited by: Creamer Media Reporter
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