08:44 AM EDT, 08/16/2024 (MT Newswires) -- Lithium Americas (LAAC.TO) agreed on Friday with a subsidiary of Ganfeng Lithium whereby Ganfeng acquired $70 million new shares of Proyecto Pastos Grandes (PGCo), the company's wholly-owned Argentinian subsidiary holding the Pastos Grandes project in Salta, Argentina.

The deal gives Ganfeng a 15% stake in PGCo.

"The completion of this transaction is an important step forward for the combined efforts of Lithium Argentina and Ganfeng Lithium in Argentina," said Lithium Argentina President and CEO Sam Pigott. "Proceeds from the transaction will be used to strengthen our balance sheet, reduce short term debt at Cauchari-Olaroz and provide additional flexibility to support our future growth plans."