Lithium Argentina (TSX:LAR) has closed a US$180 million ($252.39 million) strategic investment from Ganfeng Lithium Group (SHE:002460) through a six-year convertible note.
The note carries a 4% annual coupon, matures six years from issuance, and converts into common shares at US$12.50 per share.
Lithium Argentina will combine the net proceeds with existing cash to fully repay its US$259 million convertible notes due in January 2027.
CEO Sam Pigott says the investment strengthens the company’s financial position ahead of expansion plans.
“With the funds from the strategic investment and cash distributions from Cauchari-Olaroz, Lithium Argentina now has a materially stronger balance sheet, with lower net debt, a six-year maturity profile and a low cost of capital,” Pigott says.
“That combination gives us the flexibility to advance stage two at Cauchari-Olaroz and support [the Pozuelos-Pastos Grandes Project] in a disciplined, phased approach that limits equity dilution and unlocks the value of both assets for our shareholders.”
Ganfeng holds approximately 9.6% of Lithium Argentina’s issued shares. Upon full conversion, Ganfeng would receive 14.4 million additional shares, raising its ownership to approximately 16.1% on a fully diluted basis.
The companies’ joint venture to consolidate the Pozuelos-Pastos Grandes Project in Argentina’s Salta province remains on schedule for completion by the end of this month (September 2026).
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
Images: Lithium Argentina
