Lithium Americas, Arena Minerals jump after investment
(Kitco News) - Lithium Americas (TSX: LAC) (NYSE: LAC) is acquiring 42 million subscription receipts of Arena Minerals Inc. (TSX-V: AN) in a private placement at C$0.14 per subscription receipt for total consideration of C$6.0 million (US$4.8 million).
Lithium Americas is a development-stage company with projects in Jujuy, Argentina and Nevada, United States. Arena Minerals Inc. (TSX-V: AN) is an exploration-stage lithium company focused on developing brine resources in Argentina.
Arena was up 25.9% to 17 cents a share. Lithium Americas was up 10% to $19.64.
"The strategic ownership in Arena Minerals will provide Lithium Americas future optionality to advance exploration in Argentina in proximity to the Caucharí-Olaroz lithium project, which is being jointly developed by the Company and Ganfeng Lithium Co. Ltd. Ganfeng also holds a 18.7% equity investment in Arena Minerals. Both Lithium Americas and Ganfeng are expected to leverage their deep technical and operational experience to support Arena Minerals' exploration and development opportunities in Argentina, including the Sal de la Puna project," wrote Lithium Americas in a news release.