Arena Minerals To Be Acquired By Lithium Americas For C$311 Million

An ongoing reorganization of Lithium Americas (TSX: LAC) is not stopping it from conducting major transactions. The firm this morning revealed that it will be acquiring Arena Minerals (TSXV: AN) as it looks to expand upon its assets in the Pastos Grandes basin.

The transaction will see Arena acquired for US$227 million (C$311 million), which implies a purchase price of $0.67 per share. The figure is said to represent a 28% premium to yesterdays closing price, and a 27% premium to the 20 day volume weighted average price.

The argument for the purchase of Arena being made by Lithium Americas is that it will consolidate the Pastos Grandes Basin, with Arena currently holding land tenures next to Lithium Americas own tenures in the Salar de Pastos Grandes, which the latter acquired via the purchase of Millennial Lithium in December 2021. The development of Lithium Americas’ Pastos Grandes project, and Arena’s Sal de la Puna project are expected to be integrated on a go forward basis, resulting in a larger scale project with cost synergies for both projects.

The transaction is subject to the approval of 66.7% of Arena’ shareholders via a special meeting, as well as the required regulatory and court approvals. Termination fees of US$9.1 million have been put in place for both parties for “certain specified circumstances,” with the transaction expected to close by the third quarter of 2023.

As part of the arrangement, Gangfend Lithium, whom owns 16% of Arena on an undiluted basis, has agreed to enter a support and disposition agreement, which will see it sell its securities of Arena prior to closing of the deal. Any securities not sold under the arrangement will be acquired for cash by Lithium Americas, up to a maximum cash payment of C$75 million.

Lithium Americas last traded at $29.51 on the TSX.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

What Happens If Silver Finally Breaks $50? | Gary Thompson – Silver47

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Lithium Americas: Production Start At Argentina Lithium Brine Project Delayed Until Mid-2022

In early March, Lithium Americas (TSX: LAC) reported its fourth quarter and full year 2020...

Tuesday, March 9, 2021, 04:10:00 PM

Lithium Americas Pushes Cauchari-Olaroz Full Production To Mid-2024

On August 9, Lithium Americas Corp. (TSX: LAC) reported its second quarter 2023 financial results....

Saturday, August 12, 2023, 09:13:51 AM

Lithium Americas Approves Deal To Split, Bolstering China’s Lobbying Power

Lithium Americas (TSX: LAC) announced on Monday that the company’s board has unanimously approved the deal...

Tuesday, May 16, 2023, 10:17:26 AM

Lithium Americas: Federal Ruling On Thacker Pass Expected As Early As March

On January 5, Chief Judge Miranda Du of the U.S. District Court of the District...

Thursday, January 12, 2023, 03:05:00 PM

Lithium Americas’ Thacker Pass Faces New Attempts To Block Project By Conservationists, Tribes

On February 6, a United States district judge upheld the federal government’s decision to license...

Wednesday, February 22, 2023, 10:04:50 AM