Lithium Americas to Acquire Arena Minerals for $227 Million

By Mary de Wet

Lithium Americas Corp. said Tuesday that it has agreed to acquire Arena Minerals Inc. for an equity value of about $227 million.

The Vancouver, British Columbia-based miner said Arena's shareholders would receive 0.0226 of a Lithium Americas common share for each Arena Share held, which would result in Arena shareholders owning about 5.7% of Lithium Americas.

"This Transaction will consolidate the highly prospective Pastos Grandes basin, and creates an exciting opportunity for Lithium Americas, a Canadian incorporated and headquartered company, to add incremental growth in one of the most important lithium producing regions in the world," said Lithium Americas President and Chief Executive Jonathan Evans.

The timing of the deal aligns with the company's previously announced plan to separate into two public companies in 2023, Mr. Evans said.

China-based Ganfeng Lithium Co. Ltd., GFL International Co. Ltd. and their affiliates collectively own about 16% of Arena's outstanding shares as well as warrants that if exercised would represent a further 6% stake. Lithium said Ganfeng has entered an agreement to dispose of all of its securities of Arena prior to closing of the merger.

Write to Mary de Wet at [e-mail]

(END) Dow Jones Newswires

12-20-22 0825ET