Lithium: A Canadian mining company buys a company for $227 million to establish a presence in northern Argentina

Canadian miner Lithium Americas Corp. is advancing in the Argentine lithium trade. He agreed to buy all the shares he didn't already own Sand minerals, It is also a Canadian company that already owns 19.9%. at the moment, Arena Minerals is involved in 65% of the Sal de la Puna project located in SaltaWhich it shares with the Chinese company Ganfeng Lithium.

The deal includes a total consideration of US$227 million. he an agreement It is subject to approval from competition authorities and is expected to close before the third quarter of 2023. Therefore, Foreign company It seeks to expand its presence in the northwest of the country.

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In Puna, through Minera Exar, Lithium Americas owns 50% of the Cauchari-Olaroz project, at the Olaroz and Cauchari salt flats in Jujuy, Next to Orocobre Ltd's Olaroz plant, which has been in production since 2015. The other 50% belongs to Ganfeng Lithium. Cauchari-Olaroz aims to become the largest low-cost salt lithium carbonate project in Argentina, With 40 thousand tons of lithium carbonate annually for 20 years.

In Salta, Lithium Americas is also heading the Pastos Grandes project, in the salt flat of the same name.With an area of ​​more than 12,619 hectares. I purchased this latest development last year Now, after agreeing to purchase Arena Minerals, It plans to launch the operation in the second half of 2023. That way, It will have three projects under its influence: two in Salta and one in Jujuy.. In the US, you have an active Thacker Pass In Nevada.

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“The deal unifies the Bastos Grandes region and Creates an opportunity for Lithium Americas to continue growth in one of the world's most important lithium producing regions. “The synergies between our two projects and a better understanding of the basin will allow us to enhance development planning and maximize operation.” Jonathan Evans, President and CEO of the company With headquarters in Vancouver.

In this sense, the executive authority confirmed that The transaction objective is in line with the company's announced plan to separate into two public companies, scheduled for 2023. We expect significant project development activities in both businesses “For the start of the year,” Evans said.

The company plans to split into Lithium International, on the one hand. Instead of collecting Argentine assets; On the other hand, in Lithium Americaswhich includes US assets.

“We are very excited to participate in this transaction” He explained on his part Will Randall, President and CEO of Arena. “It represents an opportunity to unify the projectHe stressed that we are working with the Lithium Americas team to develop the Bastos Grandes Basin.

Litium Americas seeks to strengthen its presence in the lithium business in northwest Argentina.

Driven by electric mobility and energy transition, Today, Argentina is focusing on the largest number of projects, most notably lithium. Followed by copper and other metals such as silver and gold. Thus, Argentina was put on the international radar and has already begun receiving multi-million dollar investments to exploit resources from Canadian, North American, Chinese and Australian capital.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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