Lithium Argentina and Lithium Americas (NewCo) will be two independent public companies with separate management and boards, and with no ownership in one another
Lithium Americas seeks to separate operations. (Credit: Dominik Vanyi on Unsplash)
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) is pleased to announce that the Company has filed the Management Information Circular (“Circular”) in connection with the annual, general and special meeting of Lithium Americas shareholders to be held on July 31, 2023 (the “Meeting”). The Meeting will be held to consider the approval of the reorganization of the Company that will result in the separation of its North American and Argentine business units into two independent public companies (the “Separation”) and annual meeting matters, among other things.
The Separation will establish the Company as Lithium Americas (Argentina) Corp. (“Lithium Argentina”), as well as a new company to be named Lithium Americas Corp. (“Lithium Americas (NewCo)”). Lithium Argentina will retain the Company’s Argentina portfolio, which is advancing the Caucharí-Olaroz project to full production following the recent achievement of first lithium, while pursuing regional growth through development of the Pastos Grandes basin. Lithium Americas (NewCo) will become a leading North American-focused lithium company advancing the 100%-owned Thacker Pass project through construction to production to support the development of the North American lithium supply chain.
The Separation has strong shareholder support, with shareholders holding in aggregate approximately 23.8% of outstanding common shares of Lithium Americas having agreed to vote in favor of the Separation, including General Motors Holdings LLC, GFL International Co., Ltd., and officers and directors of Lithium Americas.
The Board of Directors of the Company recommends that shareholders vote in favor of the Separation and other matters presented at the Meeting.
The Separation is targeted to become effective by October 15, 2023, but in any event no later than December 31, 2023. Completion of the Separation is subject to a number of regulatory approvals and closing conditions, including approvals by the Supreme Court of British Columbia, the TSX, and the NYSE, and receipt of tax rulings from the Canada Revenue Agency and Internal Revenue Service, amongst other things. The timing of these approvals and satisfaction of closing conditions has the potential to impact the timing of the completion.
Source: Company Press Release