Lithium Argentina shares rise as Ganfeng takes project stake

[ad_1]

Lithium Americas shares rose nearly 8% on the news, trading at C$2.58 per share at noon. The company has a market cap of C$418 million.

“The completion of this transaction is an important step forward for the combined efforts of Lithium Argentina and Ganfeng Lithium in Argentina emphasizing the collaboration and shared commitment of both companies to innovate and responsibly progress the global clean energy transition,” said Lithium Argentina’s CEO Sam Pigott in a release.

“Proceeds from the transaction will be used to strengthen our balance sheet, reduce short term debt at Caucharí-Olaroz and provide additional flexibility to support our future growth plans.”

Acquired in early 2022 through the purchase of Millennial Lithium, the Pastos Grandes project is a lithium brine development located in the same basin as Ganfeng Lithium’s Pozuelos-Pastos Grandes project. It’s also near the Caucharí-Olaroz mine — a joint venture between the two companies that began production last year.

Ganfeng holds a 46.7% stake in Caucharí-Olaroz, in Argentina’s Jujuy province, and Lithium Argentina holds 44.8%.

The mine is currently operating at 70% of its 40,000-tonne-per-year design capacity, with production reaching 5,600 tonnes of lithium carbonate in the second quarter of 2024, a 24% increase from the previous quarter.

The project remains on track to meet its 2024 production guidance of 20,000–25,000 tonnes. During this ramp-up phase, production is primarily sold to Ganfeng Lithium, with the company focusing on producing battery-quality lithium as operations progress.

Lithium Argentina is positioning itself as a key player in the lithium market, focusing on lithium carbonate production for use in lithium-ion batteries and electric vehicles.

As of June 30, Lithium Argentina held $96 million in cash and cash equivalents, with an undrawn $75 million credit facility from Ganfeng.

Lithium Americas spun off Lithium Argentina last year to split its South American assets to focus on its Thacker Pass project in Nevada. The separation aimed to distance the Thacker Pass project from Chinese involvement due to US-China relations and to secure funding from the US Department of Energy. The US and its allies have been cracking down on Chinese investment in mining as they push to compete with China for access to critical minerals.

Lithium Americas secured a $2.3 billion loan from the US Department of Energy in March to finance the construction of processing facilities at Thacker Pass. Phase 1 of Thacker Pass is expected to produce 40,000 tonnes of battery-grade lithium carbonate annually and operate for 40 years.

[ad_1]

Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66bf9c910bdb4bed84e03adc74c5f945&url=https%3A%2F%2Fwww.mining.com%2Flithium-argentina-shares-rise-as-ganfeng-takes-project-stake%2F&c=7691077370659627847&mkt=en-us Author : Publish date : 2024-08-16 00:27:00 Copyright for syndicated content belongs to the linked Source .

M	T	W	T	F	S	S
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

Lithium Argentina shares rise as Ganfeng takes project stake

Hurricane Ernesto strengthens to Category 2 as it approaches Bermuda

The 5 best destinations you can visit on a Royal Caribbean cruise

The 5 best destinations you can visit on a Royal Caribbean cruise

Bolivia’s Political Landscape Transforms: Centrist Candidate Surges as Voters Turn Away from Socialism

Bolsonaro’s Conviction: What It Means for U.S.-Brazil Relations

Turks & Caicos Islands Triumph Over British Virgin Islands in Epic Rugby Clash!

Mark Carney’s Vision: The Bold Journey to Achieve Canada’s $1 Trillion Investment Dream

Unexpected Detour: American Airlines Flight Diverts to Cayman Islands, Sparking Air Travel Resilience Debate

Uncover the 7 Incredible Penguin Hotspots You Can’t Miss in Chile!

Unveiling Colombia’s Thrilling New Lacoste Concept Store!

Discovering Central America: Secretary Rubio’s Adventure Across Panama, El Salvador, Costa Rica, Guatemala, and the Dominican Republic

U.S. Steps Up to Aid Cuba After Catastrophic Hurricane Destruction

Dominica Launches Groundbreaking Initiative to Create the World’s First Sperm Whale Reserve!

Categories

Archives