08:24 AM EDT, 03/15/2024 (MT Newswires) -- Lithium Americas ( LAC ) was last seen up 5.2% in premarket New York trading after the company on Friday said its annual loss narrowed, while it won a commitment for a US$2.26 billion loan from the US government, giving it the funds to complete it Thacker Pass mining project in Nevada even as costs rise.

The company said it lost US$3.9 million, or US$0.02 per share, last year, compared with a loss of US$67.8 million, or US$0.42, in 2022. Expenses dropped 55% to US$27.6 million from US$60.9 million.

It reported no revenue after spinning out its producing assets in Argentina last year into a separate company.

Still, the company ended the year with US$195.5 million of cash on hand, up from US$0.6 million at the end of 2022. It furthered its cash position this week, receiving conditional commitment for a US$2.26-billion loan from the US Department of Energy to finance processing facilities for the Thacker Pass project.

"We are encouraged by the size of the DOE loan package, which is expected to cover roughly 75% of the estimated CAPEX for Phase 1," B. Riley Securities said in a note.

Still, the company said construction costs for the project, scheduled for completion in 2027, are on the rise, raising its capital spending estimate for the lithium mine to US$2.93 billion, an increase of US$662 million from its initial estimate, according to B.Riley Financial.

The company said the higher price tag comes on "updated quantities and execution planning tied to increased engineering progress, use of union labor through a PLA for construction of Thacker Pass, development of an all-inclusive housing facility for construction workers, updated equipment pricing and a larger project contingency".

It noted the costs are expected to be covered by the US loan and an earlier investment from General Motors (GM).

Lithium Americas ( LAC ) shares were last seen up US$0.31 to US$6.30 in premarket trading. They closed up C$0.43 to US$8.13 Thursday on the Toronto Stock Exchange.