Lithium Argentina (NYSE:LAR) Cauchari-Olaroz lithium brine operation has closed US$220 million ($311.71 million) in unsecured debt facilities to strengthen financing flexibility as work continues on a planned expansion.
The operation is held through Minera Exar, which closed a US$50 million two-year facility in June to replace existing short-term credit facilities.
A further US$170 million facility, closed in August with a syndicate of international banks, carries a three-year term and an interest rate below 5%.
Both facilities are guaranteed by Lithium Argentina’s partner, Ganfeng Lithium (SHE:002460), with the company providing a counter-guarantee covering 49% of the outstanding debt.
They remain available for drawdown until the second quarter of 2027 and are intended to allow further distributions from Cauchari-Olaroz while preserving capacity for additional borrowing, including project debt.
Lithium Argentina CEO Sam Pigott says the financing, alongside the recent approval of the stage two Large Investment Incentive Regime (Régimen de Incentivo para Grandes Inversiones or RIGI) application, strengthens the company’s balance sheet and provides flexibility to pursue its growth plans.
“These financings—unsecured and attractively priced—reflect confidence in Cauchari-Olaroz, the strength of our partnership with Ganfeng and the strong cash flow generation from the operation,” Pigott says.
The company says the facilities support a broader strategy of shifting debt to the operating-asset level while reducing corporate-level borrowings.
Lithium Argentina notes it is advancing stage two plans to add 45,000 tonnes per annum of lithium carbonate equivalent production capacity at Cauchari-Olaroz.
An environmental permit application was submitted in December 2025, while technical and engineering studies are continuing. An updated development plan is expected in the coming months.
Cauchari-Olaroz is owned 44.8% by Lithium Argentina, 46.7% by Ganfeng, and 8.5% by Jujuy provincial government-owned mining investment company Jujuy Energía y Minería Sociedad del Estado.
Write to France Pinzon at Mining.com.au
Images: Lithium Argentina
