The Board of Directors has unanimously approved the separation of its North American and Argentine business units into two independent public companies. In November, Canada ordered three Chinese companies to divest from Canadian mining companies. Lithium Americas participates with a Chinese company in the Caucharí-Olaroz project in Jujuy.

Lithium Americas has approved the separation and concentration of its lithium activities in Argentina in a new company, Lithium Argentina. canadian company, who participates in Caucharí-Olaroz project in Jujuy which will go into production this yearannounced in November the intention to separate the activity in Argentina from the rest, after Canada ordered three Chinese companies to divest from Canadian mining companies.

The Lithium Americas Board of Directors yesterday unanimously approved the signing of a settlement agreement providing for the reorganization of the business that will result in the separation of its North American and Argentine business units into two independent public companies. The company will issue a circular with more details on the proposal in June. The reorganization will be presented to shareholders for final approval in July.

Lithium Argentina will own Lithium Americas’ current interest in its lithium assets in Argentina, including 44.8% stake in Caucharí-Olaroz, the 100% owned Pastos Grandes project and the 65% interest in the Sal de la Puna project. On the Lithium Americas side, he will focus on the Thacker Pass project in Nevada and other ventures outside of Argentina.

“We look forward to the shareholder value that can be created through Lithium Americas’ unique position and development of one of the largest lithium resources in the United States, as well as the value generated by the near-term production of Lithium Argentina with a strong growth portfolio thanks to two high quality projectssaid Jonathan Evans, President and CEO of Lithium Americas.

China

The Canadian company did not provide further details on the reasons for the reorganization of its activities. The concrete thing is that the company announced its intention to separate the activity in Argentina from the rest in November, a day after the Canadian government ordered three Chinese companies to divest themselves of their shares in Canadian mining companies.

Citing national security concerns, Canada ordered Chinese companies Sinomine Rare Metals Resources, Zangge Mining Investment and Chengze Lithium International to divest their stakes in three junior mining exploration companies. One such company is Ultra Lithium, owner of the Laguna Verde project in Catamarca.who agreed with Zangge to end their agreement and the exit of the Chinese company from said project.

The operator of the Caucharí-Olaroz project in Jujuy is Minera Exar, which is owned by Lithium Americas (45.75%), China’s Jiangxi Ganfeng Lithium (45.75%) and the state of Jujuy JEMSE (8.5%). Caucharí-Olaroz will be the third lithium project to enter production in the country. The project will go into production this year and have the capacity to produce 40,000 tonnes of lithium carbonate per year by 2024.