Lithium Americas Corp. has announced its recent purchase of 23.3 million common shares of Arena Minerals Inc. at a price of CAN$0.54 per share through an alternative market transaction for aggregate consideration of approximately US$10 million. The Arena Shares represent 6.3% of the issued and outstanding common shares of Arena Minerals as of close of market on 24 November 2021.
Prior to the Purchase, Lithium Americas beneficially owned 42.8 million common shares, representing approximately 11.6% of Arena Mineral’s issued and outstanding share capital on a non-diluted basis, and 21.4 million share purchase warrants. Following the purchase, Lithium Americas beneficially owns 66.2 million common shares of Arena Minerals, representing approximately 18.0% of Arena Mineral’s issued and outstanding common shares on a non-diluted basis, and 21.4 million Warrants.
The additional investment in Arena Minerals further reinforces Lithium Americas’ commitment to the region and its long-term resource development plans in Argentina. Arena Minerals’ Sal de la Puna lithium brine project, together with the immediately adjacent Pastos Grandes lithium brine project owned by Millennial Lithium Corp., provides future optionality in proximity to the company’s Caucharí-Olaroz lithium project, establishing Lithium Americas as a premier lithium brine developer in Argentina.
The company is acquiring the securities for investment purposes. Depending on market conditions and other factors, Lithium Americas may, from time to time, acquire additional common shares, Warrants or other securities of Arena Minerals or dispose of some or all of the common shares, Warrants or other securities of Arena Minerals that it owns at such time. The company has signed an undertaking not to exercise the Warrants until such time as the company can obtain disinterested shareholder approval of the creation of a new control person by the shareholders of Arena Minerals, which is required once the company passes the 20% ownership threshold. An early warning report will be filed by Lithium Americas on SEDAR at www.sedar.com, in accordance with applicable securities laws.
Pursuant to the subscription agreement between the company and Arena Minerals, dated 12 July 2021, the company expects to appoint Ignacio Celorrio as its nominee to the Arena Minerals’ board of directors. Celorrio currently serves as President, Latin Americas for Lithium Americas and has extensive experience working in the Argentine mining industry.
Read the article online at: https://www.globalminingreview.com/mining/29112021/lithium-americas-increases-strategic-interest-in-arena-minerals/
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