11:05 AM EST, 03/05/2024 (MT Newswires) -- Lithium Americas (Argentina) Corp. ( LAAC ) said Tuesday that the company and certain of its subsidiaries have signed a definitive agreement with a subsidiary of Ganfeng Lithium Co. Ltd.

Under the agreement, Ganfeng Lithium agreed to buy US$70 million in newly issued shares of Proyecto Pastos Grandes SA, the company's indirect wholly-owned Argentinian subsidiary holding the Pastos Grandes project in Salta, Argentina, which is expected to represent about 15% interest in Proyecto Pastos Grandes and the project.

Ganfeng Lithium, with the support of Lithium Argentina, will carry out the preparation of a regional development plan for the Pastos Grandes Basin and Ganfeng Lithium's Pozuelos-Pastos Grandes project. This is expected to be finalized by the end of 2024.

The deal is expected to close in the second quarter.

The company intends to use the proceeds of the subscription for the advancement of the lithium projects in Argentina. On closing of the deal, Ganfeng Lithium is entitled to a potential adjustment of up to an additional 1.6% interest in Proyecto Pastos Grandes, based on an independent resource estimation process.

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