ENERGY MINERALS

Lithium Americas to restart Caucharí-Olaroz construction

Shares in Lithium Americas rose to a one-year high on Friday as the company said it would restart construction activities “over the next few weeks” at its Caucharí-Olaroz joint venture development in Argentina.

Staff reporter
 Lithium Americas’ Caucharí-Olaroz JV project in Argentina was 47% complete at June 30

Lithium Americas’ Caucharí-Olaroz JV project in Argentina was 47% complete at June 30

The project was suspended in March in line with the government's quarantine measures and suspended again in early July after two workers tested positive for COVID-19, with the company then "actively addressing" matters with the Jujuy province.

"We remain focused on protecting our workers and communities, while coordinating closely with the province of Jujuy to ensure we operate responsibly and safely as we begin to restart construction activities over the next few weeks," president and CEO Jon Evans said.

Lithium Americas said on Friday the project was 47% complete at June 30, with 75% or US$427 million of the planned capital committed and 54% or $304 million spent.

It was continuing to review the impacts of the temporary suspension of the project on the timeline and budget and said it would provide an update once the assessments had been completed.

Joint venture partner Ganfeng Lithium is increasing its stake in Caucharí-Olaroz from 50% to 51% in a transaction "on track to close by the end of Q3" subject to remaining closing conditions, Lithium Americas said.

It also has the Thacker Pass lithium project in Nevada, where it expected a definitive feasibility study in the fourth quarter and said it was exploring financing options, including the possibility of a joint venture partner.

The company ended June with $50 million in cash and equivalents.

Its shares (TSX: LAC) touched C$10.57 intraday before closing up 7.7% to $10.44, capitalising it at $942.3 million (US$712 million).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.