Argentina Lithium Closes US$90 Million Investment by Stellantis in ARS$ Equivalent
Argentina Lithium Closes US$90 Million Investment by Stellantis
in ARS$ Equivalent
TSX Venture Exchange (TSX-V):
LIT
Frankfurt Stock Exchange (FSE):
OAY3
OTCQB Venture Market (OTC):
PNXLF
VANCOUVER, BC
,
Oct. 5, 2023
/CNW/ -
Argentina Lithium & Energy Corp.
(TSXV: LIT) (FSE: OAY3) (OTC: PNXLF)
, ("Argentina
Lithium" or the "Company")
is pleased to announce closing of the
US$90 million
1
investment in AR$ equivalent in
Argentina
Litio y
Energia S.A. ("
ALE
") by Stellantis (defined below) (the "Transaction"), as previously announced in the Company's news release dated
September 27, 2023
. Stellantis is one of the world's leading automakers and mobility providers with iconic brands including Abarth, Alfa
Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep
®
, Lancia, Maserati, Opel, Peugeot, RAM,
Vauxhall
, Free2Move and
Leasys.
Pursuant to the Transaction, Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V. ("
Stellantis
"), has invested the ARS$
equivalent of
US$90 million
1
in
Argentina
to acquire shares of ALE (the "
ALE Shares
"). Further, the Company has granted Stellantis the
right (the "
Exchange Right
") to exchange all of the ALE Shares for up to 19.9% of the outstanding common shares of Argentina Lithium
(on an undiluted basis) in the future, subject to certain conditions set out in an exchange agreement. In connection with the Transaction, the
parties have also entered into a lithium offtake agreement, a shareholders' agreement with respect to ALE and, upon exercise of the
Exchange Right, Argentina Lithium and Stellantis will enter into an investor rights agreement. The proceeds of the Transaction will be used
to advance development of the Company's lithium projects held through its wholly owned subsidiary in
Argentina
, and for general corporate
purposes.
As a result of the Transaction, Stellantis owns 19.9% of the issued and outstanding ALE Shares and Argentina Lithium owns 80.1%.
About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world's leading automakers and a mobility
provider. Its storied and iconic brands embody the passion of their visionary founders and today's customers in their innovative products
and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep
®
, Lancia, Maserati, Opel, Peugeot,
RAM,
Vauxhall
, Free2Move and Leasys. Powered by their diversity, Stellantis leads the way the world moves – aspiring to become the
greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in
which it operates. For more information, visit
www.stellantis.com
.
About Argentina Lithium
Argentina Lithium & Energy Corp is focused on acquiring high quality lithium projects in
Argentina
and advancing them toward production in
order to meet the growing global demand from the battery sector. The management group has a long history of success in the resource
sector of
Argentina
and has assembled a first-rate team of experts to acquire and advance the best lithium properties in the "Lithium
Triangle". The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in
Argentina
since 1993.
ON BEHALF OF THE BOARD
"Nikolaos Cacos"
_______________________________
Nikolaos Cacos
, President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events
or developments the Company believes, expects or anticipates will or may occur in the future, including, without limitation, the
Transaction; the use of proceeds; the strengths, characteristics and potential of the Transaction; Argentina Lithium's plans for, and the
future prospects of, its mineral properties; the exercise of the Exchange Right by Stellantis; entering into the Investor Rights Agreement;
production of lithium products and the successful start of commercial production at Argentina Lithium's mineral properties are forward-
looking statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized,
there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause
actual results or events to differ materially from current expectations include, among other things: failure to receive TSXV approval;
failure to satisfy the condition precedents, the potential that the Transaction could be terminated under certain circumstances; the impact
of COVID-19; risks and uncertainties related to the ability to obtain, amend, or maintain licenses, permits, or surface rights; risks
associated with technical difficulties in connection with mining activities; and the possibility that future exploration, development or
mining results will not be consistent with the Company's expectations. Actual results may differ materially from those currently
anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed
discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, unless required pursuant to applicable laws. We advise U.S. investors that the SEC's mining guidelines
strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our properties.
1 As per the official exchange rate of Argentina Central Bank
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For further information:
Corporate Communications, Tel: 1-604-687-1828, Toll-Free: 1-800-901-0058, Email: [email protected]
CO: Argentina Lithium & Energy Corp.
CNW 13:42e 05-OCT-23