Lithium Americas Closes US$172 Million Strategic Financing with Ganfeng Lithium
June 7, 2017
Lithium Americas Closes US$172 Million Strategic Financing with Ganfeng Lithium
Vancouver, Canada: Lithium Americas Corp. ("Lithium Americas" or the "Company") (TSX: LAC)
(OTCQX: LACDF) is pleased to announce it has completed the closing of the investment agreement (the
"Investment Agreement") with GFL International Co., Ltd., a wholly-owned subsidiary of Jiangxi Ganfeng
Lithium Co., Ltd. (“Ganfeng Lithium”). Pursuant to the Investment Agreement, Ganfeng Lithium agreed to
provide Lithium Americas with an aggregate of approximately US$172 million in financing.
As described in the Company’s press releases dated January 17, 2017 and May 10, 2017, in connection
with closing of the Investment Agreement, the parties completed the issue and sale of the remaining
63,750,000 common shares at a price of C$0.85 per common share for gross proceeds of approximately
C$54 million (US$40 million), executed a credit agreement for a US$125 million credit facility and
executed an off-take agreement for the purchase and sale of lithium products. When combined with the
11,250,000 common shares (US$7 million) issued on January 27, 2017 pursuant to an initial equity
installment under the Investment Agreement, Ganfeng Lithium now holds 75,000,000 common shares of
the Company.
Tom Hodgson, Lithium Americas’ CEO, commented: "We welcome Ganfeng Lithium as our largest
shareholder. T he closing of the Investment Agreement places Lithium Americas in a strong financial
position and will allow the Company to now commence construction of the Cauchari-Olaroz lithium project
with our joint venture partner SQM, with the objective of becoming the next low cost brine producer of
lithium by 2019."
About Ganfeng Lithium
Ganfeng Lithium is the largest integrated lithium producer in in China, with a total capacity of around
30,000 tonnes per annum of lithium carbonate equivalent. Ganfeng Lithium’s products include lithium
metal, lithium hydroxide, lithium carbonate, lithium fluoride, and lithium chloride. In Australia, Ganfeng
Lithium owns a 43.1% interest in the Mount Marion lithium spodumene project with Mineral Resources
Ltd. (43.1%) and Neometals Ltd. (13.8%).
Ganfeng Lithium was founded in 2000 and is listed on the Shenzhen Stock Exchange (SHE: 002460) with
a current market capitalization of approximately US$5 billion.
About Lithium Americas
Lithium Americas, together with SQM, is developing the Cauchari-Olaroz lithium project, located in Jujuy,
Argentina, through its 50% interest in Minera Exar. In addition, Lithium Americas owns 100% of the
Lithium Nevada project (formerly Kings Valley project), and RheoMinerals Inc., a supplier of rheology
modifiers for oil-based drilling fluids, coatings, and specialty chemicals.
For further information contact:
Lithium Americas Corp.
Investor Relations
Suite 1100 – 355 Burrard Street
Vancouver, BC, V6C 2G8
Telephone: 778-656-5820
Email: [email protected]
Website: www.lithiumamericas.com
Forward-looking statements
Statements in this release that are forward-looking information are subject to various risks and
uncertainties concerning the specific factors disclosed here and elsewhere in the Company's periodic
filings with Canadian securities regulators. Forward-looking information in this news release includes the
date upon which the credit agreement becomes effective, which occurs concurrent with first draw-down.
When used in this document, the words such as “intent”, “target”, “expect”, “estimated” and “scheduled”
and similar expressions represent forward-looking information. Information provided in this document is
necessarily summarized and may not contain all available material information.
All such forward-looking information and statements are based on certain assumptions and analyses
made by Lithium Americas management in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as other factors management believes are
appropriate in the circumstances, including in the case of the credit agreement with Ganfeng, the
implementation of the agreed security interest structure and satisfaction of other customary conditions to
first draw-down. These statements, however, are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from those projected in the forward-
looking information or statements. Important factors that could cause actual results to differ from these
forward-looking statements include those described under the heading "Risks Factors" in the Lithium
Americas’ most recently filed MD&A, Annual Information Form and other continuous disclosure
filings. The Company does not intend, and expressly disclaims any obligation to, update or revise the
forward-looking information contained in this news release, except as required by law. Readers are
cautioned not to place undue reliance on forward-looking information or statements.