SMM8, 14 August: Ganfeng Lithium Industry announced that Ganfeng International, a wholly owned subsidiary of Ganfeng Lithium Industry, plans to invest in the Netherlands to set up a wholly owned subsidiary, Dutch Ganfeng, at a price of US $60.3 million. Acquire a 37.5 per cent stake in Argentina's Minera Exar.
Minera Exar, an Argentine mining and exploration company founded in 2006, owns the Cauchari-Olaroz Lithium Salt Lake project in the Argentine province of Jujuy. The first phase of the planned production capacity of 25000 tons of battery-grade lithium carbonate is scheduled to start production in 2020.
According to the announcement, At the 23rd meeting of the fourth session of the Board of Directors held on August 13, 2018, Ganfeng Li Industry considered and approved the acquisition of 37.5% stake in Argentina's Minera Exar Company by Ganfeng International Investment, a wholly owned subsidiary of the Netherlands. Motion on Investment in title ", Agree that Ganfeng International, a wholly owned subsidiary of the company, will invest in the Netherlands with its own capital of US $85.3 million to set up the provisional name of Ganfeng Holding Corp. (, a wholly owned subsidiary of the company, and finally take the registered name of the Dutch Company Registry as the registered name, hereinafter referred to as "Dutch Ganfeng"); Upon its establishment, Ganfeng in the Netherlands will acquire a 50 per cent stake in Minera Exar held by Sociedad Quimica y Minera de Chile S.A (Chilean Chemical Mining Company, hereinafter referred to as "SQM") for US $60.3 million. And authorize the management of the company to handle the relevant matters of this transaction.
In the course of this transaction, Lithium Americas Corp. (hereinafter referred to as "American Lithium") will also convert its US $4.7 million debt to Minera Exar into a stake in Minera Exar. Therefore, upon completion of this transaction, Ganfeng of the Netherlands will own 37.5 per cent of Minera Exar and American lithium will own 62.5 per cent of Minera Exar.