Lithium Argentina (TSX: LAAC) has given up a portion of its Pastos Grandes property in an effort to obtain funds to advance the company. The firm this morning closed on an investment by Ganfeng Lithium, which will see the China-based company take a larger stake in the project.
Under the terms of the investment agreement, Ganfeng has invested $70 million into Proyecto Pastos Grandes SA, the subsidiary of Lithium Argentina that currently holds the Pastos Grandes Project. The investment has earned them a 14.9% interest in the property, which is in addition to Ganfeng’s current 9.4% interest in Lithium Americas.
Pastos Grandes is the property that was acquired when Lithium Americas, the predecessor to Lithium Argentina, acquired Millennial Lithium in 2022 for $491 million. The project is found in the same basin as Ganfeng’s Pozuelos-Olaroz project, and 100 kilometres from Lithium Argentina’s Cauchari-Olaroz mine.
Proceeds from the investment are to be used to settle short term debt related to Cauchari-Olaroz, strengthen the company’s balance sheet, and provide flexibility for future growth plans.
Lithium Argentina last traded at $3.43 on the TSX.
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