Another miner is set to leave Canada, following Solaris Resources’ announced departure earlier this month. Lithium Argentina (TSX: LAAC) is set to establish its corporate domicile in Switzerland, while ending its ties to Canada.
As part of the move, the company will change its name to Lithium Argentina AG, with the company to continued from the province of British Columbia to that of the jurisdiction of the Canton of Zug, Switzerland. The move remains subject to shareholder, exchange, and court approval.
The move is said to follow a review of its business and corporate structure, with Switzerland determined to be the best jurisdiction from a strategic, commercial, and legal perspective, with the move to “provide expanded financing flexibility.” Ganfeng, who has partnered with Lithium Argentina on its Cauchari-Olaroz lithium mine in Argentina, has agreed to a three year standstill agreement in connection with the move. Under that agreement Ganfeng has agreed to not directly or indirectly acquire or facilitate the acquisition of a controlling interest in the company.
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The company’s listings on the TSX and NYSE are not expected to be impacted by the move.
The departure from Canada notably follows an announcement by Solaris Resources earlier this month, who indicated they would be leaving Canada by January 1. The spate of departures follows Canada implementing legislation that blocks foreign investment in critical minerals projects, even when those projects are outside of the countries borders.
Lithium Argentina last traded at $4.71 on the TSX.
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