Ganfeng Lithium to pay $51m for 15% of Lithium Americas’ Pastos Grandes project in Argentina
Lithium Argentina (TSX: LAAC; NYSE: LAAC), the recent spinout of Lithium Americas (TSX: LAC; NYSE: LAC), says it is selling 15% of its Pastos Grandes project in Argentina to a subsidiary of China’s Ganfeng Lithium for C$70 million ($51.7m).
Its stock rose C61¢ or C9.4% to C$7.08 on the news.
Ganfeng’s investment will go toward the purchase of newly issued shares of Proyecto Pastos Grandes SA, Lithium Argentina’s local subsidiary.
Lithium Argentina is already partners with Ganfeng at the Cauchari-Olaroz lithium mine, which began production last June. Ganfeng holds 46.7% of the brine operation with Lithium Argentina holding 44.8%.
Lithium Americas split its South American assets off last fall to separate its development-stage Thacker Pass project in Nevada. The lithium clay project could benefit from U.S. government funding for battery metals production, and General Motors has invested US$650 million into Thacker Pass in return for exclusive rights to the first 10 years of lithium carbonate output.
Lithium Americas acquired Pastos Grandes in 2022. The property is in the Salta province, adjacent to Ganfeng’s Pozuelos-Pastos Grandes project and 100 km from Cauchari-Olaroz.
The Pastos Grandes feasibility study is being updated. The project is permitted, and this year’s development budget is C$30 million ($22m).