Shareholders of Lithium Americas Corp (NYSE: LAC) have agreed to plans that will see the company split into two separate entities.
The division into Lithium Americas (Argentina) Corp and Lithium Americas Corp was approved by 98.85% of shareholder votes, with the split expected to be completed in early October. Even so, the move remains subject to regulatory approvals.
When first announcing its intention to split into two businesses back in November 2022, Lithium Americas argued that doing so was the best way for its operations to reach their full potential whilst also unlocking shareholder value.
Lithium Americas President and CEO Jonathan Evans commented:
The North American Lithium Americas business will inherit the Thacker Pass Lithium Project and pre-existing investments in Green Technology Metals and Ascend Elements. The business is optimistic that Thacker Pass, which is the largest known measured and indicated lithium resource in the United States, could become a large-scale mining operation.
Meanwhile, Lithium Americas (Argentina) will take ownership of the Pastos Grandes lithium brine project, Sal de la Puna and the Caucharí-Olaroz lithium carbonate brine operation.
The latter project, which is jointly owned with Ganfeng Lithium (OTC: GNENF) and state-run outfit JEMSE, is expected to develop into a low-cost brine lithium carbonate operation.
The project produced its first lithium in early June, though extra equipment is required in order for it to generate a product which is of battery-quality.
Even so, this has been touted as the first step in a project which has been touted as having a production capacity of 40,000 tonnes per annum.
Pastos Grandes was acquired in December 2021 from Millennial Lithium, while the nearby Sal de la Puna project was snapped up as part of Lithium Americas’ acquisition of Arena Minerals towards the end of 2022.
As such, both of the new companies are some way from operating at full capacity and remain at the development stage, with Lithium Americas yet to generate any revenue. But the business has still attracted investment and offtake agreements from General Motors (NYSE: GM), demonstrating the allure of budding lithium projects.
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