LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) has closed an investment agreement with GFL International Co. Under terms of the agreement, the company is to gain access to $172 million in new financing. The Chief Executive Officer, Tom Hodgson expects the new financing to place the company in a strong financial position as they commence work on the Cauchari-Olaroz lithium project.

Ganfeng Lithium Investment

LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) is to issue 63,750,000 shares at a price of C$0.85 per common share as part of the investment agreement. Gross Proceeds from the offering should be about $40 million. The investment also provides access to a $125 million credit facility that can only be executed in an off-take agreement, for the purchase of lithium products.

Taking into consideration previous investments Ganfeng Lithium now holds 75,000,000 of LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) shares.

“We welcome Ganfeng Lithium as our largest shareholder. The closing of the Investment Agreement places Lithium Americas in a strong financial position and will allow the Company to now commence construction of the Cauchari-Olaroz lithium project with our joint venture partner SQM, with the objective of becoming the next low-cost brine producer of lithium by 2019,” said Mr. Hodgson.

The investment is a big boost for LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) as it continues to ramp up Lithium production. There has been a growth in demand for lithium products as the electric vehicle market continues to gain momentum. Growing focus on green energy solutions has also led to a growth in demand for lithium-ion batteries that are used in combination with solar panels.

Director’s Appointment

Separately, LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) has appointed Wang Xiaoshen and Jonathan Evans as independent directors. Chairman of the board, George Ireland, expects the two to play a pivotal in the company’s ongoing transition.

“We are very pleased to welcome Xiaoshen and Jon to Lithium Americas, and believe that they will add considerable value as the Company transitions into a producing specialty chemical company with a global mandate. Xiaoshen and Jon bring a wealth of knowledge and lithium industry experience,” said Mr. Ireland.

Mr. Wang joins LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) board as a representative of Ganfeng Lithium. He joins the company with vast experience in sales and marketing of lithium products. Mr. Evans, on the other hand, joins the company with 20 years of operational and management experience after serving in various industries.

In Wednesday’s trading session, LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF)’ stock was up by 3.63% ending the day at $0.7458 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.