By Adriano Marchese

Lithium Americas Corp. said Monday that it has made an offer for around US$400 million to acquire Millennial Lithium Corp. which is currently being pursued by China-based Contemporary Amperex Technology Co.

Under the terms of the offer, the Canadian lithium project developer said each Millennial shareholder will receive 4.70 Canadian dollars, around US$3.79, a share payable in its own shares and C$0.001 in cash per share.

The company noted that based on the its closing price on Oct. 29, Millennial shareholders would own around 9.9% of Lithium Americas.

"As we bring Caucharí-Olaroz into production over the next year and continue to advance our Stage 2 expansion planning, the addition of this highly complementary lithium brine resource further enhances our long-term growth strategy in Argentina and leverages our technical and development expertise," President and Chief Executive Jonathan Evans said.

The board of Millennial said it has unanimously determined that this offer constitutes a superior proposal compared with its agreement with Contemporary Amperex Technology.

In late September, Tesla Inc. supplier CATL said it would acquire Millennial Lithium Corp. in an all-cash deal worth C$377 million.

Lithium Americas said the offer also provides for a reimbursement to Millennial for the termination fee of US$20 million payable to CATL if the CATL agreement is terminated

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

11-01-21 0920ET