Argentina Lithium announces US$90 million investment by stellantis in ARS$ equivalent.
Argentina Lithium & Energy Corp. (TSXV: LIT) (FSE: OAY3) (OTC: PNXLF), (“Argentina Lithium” or the “Company”) announce that it has entered into a definitive agreement (the “Investment Agreement”) on September 26, 2023, for the ARS$ equivalent of a US$90 million1 investment in Argentina Litio y Energia S.A. (“ALE”), by Stellantis (defined below) (the “Transaction”), one of the world’s leading automakers and mobility providers with iconic brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, RAM, Vauxhall, Free2Move and Leasys.
Pursuant to the Transaction, Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V. (“Stellantis“), has agreed to invest the ARS$ equivalent of US$90 million1 in Argentina to acquire shares of ALE (the “ALE Shares“). Further, the Company has granted Stellantis the Exchange Right (as defined below) to exchange all of the ALE Shares for up to 19.9% of the outstanding common shares of Argentina Lithium (on an undiluted basis) (“Common Shares“) in the future, subject to certain conditions.
The proceeds of the Transaction will be used to advance development of the Company’s lithium projects held through its wholly owned subsidiary in Argentina, and for general corporate purposes.
As a result of the Transaction, Stellantis will own 19.9% of the issued and outstanding ALE Shares and Argentina Lithium will own 80.1%.
Nikolaos Cacos, Argentina Lithium President & Chief Executive Officer said:
We are delighted to have Stellantis as a partner in the future development of our lithium projects in Argentina.
“Together, we share a vision to build a sustainable lithium mining operation for the future. We look forward to a strong and successful relationship with Stellantis and we are committed to delivering a sustainable lithium product that will contribute to the electrification of transportation and the protection of our atmosphere.”
Argentina Lithium Announces US$90 Million Investment by Stellantis in ARS$ Equivalent, VANCOUVER, BC, Sept. 27, 2023
