Draft Article

This article has not been published, as a result this article will not be visible to the public

Lithium Americas Split Highlights Growth Opportunities

By Duncan Ferris

Aug 15, 2023

3 min read

The split of Lithium Americas (LAC) into two different companies has been approved by shareholders, with the company touting the significant potential of both operations.

Future looking alternative energy technology concept with a digital lithium ion rechargeable battery symbol

Shareholders of Lithium Americas Corp (NYSE: LAC) have agreed to plans that will see the company split into two separate entities.

The division into Lithium Americas (Argentina) Corp and Lithium Americas Corp was approved by 98.85% of shareholder votes, with the split expected to be completed in early October. Even so, the move remains subject to regulatory approvals.

When first announcing its intention to split into two businesses back in November 2022, Lithium Americas argued that doing so was the best way for its operations to reach their full potential whilst also unlocking shareholder value.

Lithium Americas President and CEO Jonathan Evans commented:

"“We are delighted to see our shareholders’ overwhelming support for the Separation. Following the Separation, the Lithium Americas team is committed to advancing the Thacker Pass project toward production to support the critical North American lithium supply chain. “Meanwhile, the Lithium Argentina team will advance Caucharí-Olaroz toward full commercial production and pursue development opportunities in its significant growth pipeline in Argentina.”"
—

The North American Lithium Americas business will inherit the Thacker Pass Lithium Project and pre-existing investments in Green Technology Metals and Ascend Elements. The business is optimistic that Thacker Pass, which is the largest known measured and indicated lithium resource in the United States, could become a large-scale mining operation.

Meanwhile, Lithium Americas (Argentina) will take ownership of the Pastos Grandes lithium brine project, Sal de la Puna and the Caucharí-Olaroz lithium carbonate brine operation.

The latter project, which is jointly owned with Ganfeng Lithium (OTC: GNENF) and state-run outfit JEMSE, is expected to develop into a low-cost brine lithium carbonate operation.

The project produced its first lithium in early June, though extra equipment is required in order for it to generate a product which is of battery-quality.

Even so, this has been touted as the first step in a project which has been touted as having a production capacity of 40,000 tonnes per annum.

Pastos Grandes was acquired in December 2021 from Millennial Lithium, while the nearby Sal de la Puna project was snapped up as part of Lithium Americas’ acquisition of Arena Minerals towards the end of 2022.

As such, both of the new companies are some way from operating at full capacity and remain at the development stage, with Lithium Americas yet to generate any revenue. But the business has still attracted investment and offtake agreements from General Motors (NYSE: GM), demonstrating the allure of budding lithium projects.

#Conquering the NEW Lithium Frontier

Leaving the traditional large-cap landscape, Eureka Lithium, a mining company listed on the CSE, shines a spotlight on a captivating investment opportunity in the junior exploration sector.

There's a global surge in demand for lithium due to its critical role in the production of electric vehicle batteries and other applications driving the global energy transition. With so many growing industries crying out for lithium, global demand for lithium carbonate equivalent is expected to soar from 500,000 metric tonnes to as much as 4 million between 2021 and 2030, according to Mckinsey.

That’s why Eureka Lithium’s strategic positioning in Quebec’s next lithium frontier presents a compelling opportunity.

Eureka Lithium has secured a leading land position for lithium exploration within Nunavik, an under-explored region that has a near-ideal structural setting for spodumene-bearing pegmatites. Some experts, like award-winning prospector Shawn Ryan, are convinced this is the next major lithium district in North America. 

With a vast expanse of 1,408 square kilometers of prime land, Eureka Lithium can execute an extensive near-term exploration program, leading the way in identifying and capitalizing on valuable lithium resources in this exciting new frontier.

There’s good reason to think this could be fruitful, with data from the Quebec government’s sediment database showing Eureka’s land owned as having the largest lithium concentrations in the 99th percentile of the ENTIRE province.

The company's focus on this exciting new frontier puts it in a favorable position to take advantage of skyrocketing lithium demand.

If you're seeking alternatives to the same old market leaders, Eureka Lithium, an under-the-radar find, is worth your attention.

Related Articles:

Explore more on these topics:

Metals and Mining Lithium Materials

Important Notice And Disclaimer

PAID ADVERTISEMENT

This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Investing Whisperer on behalf of Eureka Lithium Corp to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of sixty thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.

CHANGES IN SHARE TRADING AND PRICE

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.

NO OFFER TO SELL OR BUY SECURITIES

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.

INFORMATION

Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.

This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.

NO FINANCIAL ADVICE

The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.

FORWARD LOOKING STATEMENTS

This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.

INDEMNIFICATION/RELEASE OF LIABILITY

By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.

TERMS OF USE AND DISCLAIMER

By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY

All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.

AUTHORS: VALUETHEMARKETS

valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.