Lithium Americas Corp. announced several important operating and corporate steps related to Cauchari Olaroz lithium project, located in Jujuy province, also as the completed transaction with Ganfeng Lithium Co. Ltd.
- On October 31, 2018, Lithium Americas completed a series of transactions with subsidiaries of Jiangxi Ganfeng Lithium Co., Ltd. (“Ganfeng”) and Sociedad Química y Minera de Chile S.A. (“SQM”) with respect to the Cauchari-Olaroz lithium project in Jujuy province.
- As a result of the Transaction, Lithium Americas increased its interest in Minera Exar S.A., the holding company for Cauchari-Olaroz, to 62.5% from 50% with Ganfeng holding the remaining 37.5%.
- Development activities are on schedule with the advancement of detailed engineering, ponds construction, production wells drilling, camp construction, plant design and supply purchases to support the start of Stage 1 production in 2020. No delay is anticipated to the production schedule as a result of the Transaction.
- The first evaporation pond was completed and commenced filling with brine in October 2018.
- A total of $41 million has been advanced to Minera Exar during the first nine months of 2018 (including $22.5 million by the Company) in the form of equity contributions and loans. An additional $12 million was advanced to Minera Exar subsequent to the quarter ended September 30, 2018 (including $9 million by the Company).
- Minera Exar has increased the size of its team and there are approximately 180 full-time Minera Exar employees and over 200 additional contractors working on Cauchari-Olaroz in Argentina.
- Initial Stage 1 capital cost estimate of $425 million, on a 100% basis and before value-added taxes (“VAT”), remains unchanged.