Lithium Argentina (TSX:LAR) has repurchased US$200 million ($285.11 million) in aggregate principal amount of its convertible senior notes due January 2027 for approximately US$198 million in cash, plus accrued interest.
The company funded the transaction with cash on hand, including proceeds from Ganfeng Lithium Group’s US$180 million strategic investment completed on 15 September 2026.
Following the buyback, cash on hand exceeded US$100 million. Lithium Argentina plans to deploy this capital to repay the remaining US$59 million balance on or before the 15 January 2027 maturity date to further lower overall debt.
CEO Sam Pigott says the buyback advances balance sheet optimisation.
“Repurchasing the majority of the 2027 notes with cash is the next step in deleveraging and strengthening our balance sheet,” Pigott says.
“With no other corporate-level debt maturing until 2032 and Cauchari-Olaroz generating strong cash flow, we are well positioned to allocate capital in the way that best serves our shareholders.”
Lithium Argentina is a lithium carbonate producer for lithium-ion batteries and electric vehicles. It operates the Cauchari-Olaroz lithium brine operation in the Jujuy province of Argentina and is advancing PPG in the Salta province of Argentina.
Write to Paula Fabe at Mining.com.au
Main image: Lithium Argentina
