07:58 AM EDT, 04/18/2024 (MT Newswires) -- Lithium Americas ( LAC ) shares sunk by almost a quarter in U.S. pre-market trading after the company said overnight Wednesday that it would raise US$275 million in a share sale.

The company will sell 55 million common shares at US$5 apiece in an underwritten public offering expected to close on April 22. Lithium Americas ( LAC ) plans to use the proceeds to advance the construction and development of its Thacker Pass lithium project in Humboldt County, Nevada.

The share sale underwriters have an option to buy up to 8.3 million additional common shares.

After accounting for funding from a loan of US$2.26 billion and the pending US$330 million second tranche investment from General Motors, Lithium Americas ( LAC ) had about US$436 million still to commit to phase 1 capital costs at the Nevada project.

Incremental funding needs will be covered through the exercise of the over-allotment option - if it is exercised - or other financing alternatives.

Lithium Americas' ( LAC ) stock was down 24% at last look in pre-market trading in New York. The shares edged up 2.4% to $6.63 in Canada yesterday.