Re: Rethinking LAC's change from Majority to Minority ownership at Cauchari-Olaroz
posted on
May 08, 2020 01:03PM
John, I think Carl Suran over at Seeking Alpha had 4 bullet points on this back on 7 Feb 2020:
"We see Nevada as a better place to put our money," Lithium Americas (LAC +1.8%) CEO Jon Evans says as China's Ganfeng Lithium will take control of a lithium project the two companies have been developing in Argentina.
Ganfeng will pay $16M to increase its stake in the Cauchari-Olaroz project to 51%, while Lithium Americas will retain a 49% stake and receive an additional $40M in cash.
The move helps Lithium Americas lower its debt and reduce its exposure to Argentina, which has been smacked by a steep recession and surging inflation.
Lithium Americas plans to start building the $400M Thacker Pass lithium project in Nevada next year after U.S. regulators last month moved closer toward approving the project and could issue permits as soon as next January.