Lithium Americas Announce FID for Thacker Pass Phase 1 and Closes Strategic Investment from Orion Resource Partners

Lithium Americas Announce FID for Thacker Pass Phase 1 and Closes Strategic Investment from Orion Resource Partners

(All amounts in US$ unless otherwise indicated)

VANCOUVER, British Columbia–(BUSINESS WIRE)–Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) today announced the closing of the previously announced $250 million investment from fund entities managed by Orion Resource Partners LP (collectively, “Orion”), for the development and construction of Phase 1¹ of the Thacker Pass lithium project in Humboldt County, Nevada (“Thacker Pass” or the “Project”). Contemporaneously, Lithium Americas and General Motors Holdings LLC (“GM”) (together, the Thacker Pass joint venture (“JV”) partners (“JV Partners”)) announced the final investment decision (“FID”) for Thacker Pass Phase 1.

HIGHLIGHTS

• As part of closing, Orion has purchased senior unsecured convertible notes in the aggregate principal amount of $195 million, has paid Lithium Americas $25 million in exchange for payments corresponding to the minerals produced and gross revenue generated by Thacker Pass and committed an additional $30 million in aggregate principal amount of senior unsecured convertible notes available through a delayed draw facility, subject to the satisfaction of certain conditions (the “Investment”).
• The Investment satisfies all remaining requirements from both the U.S. Department of Energy (“DOE”) and GM to satisfy all remaining equity capital fundraising requirements under the previously announced $2.26 billion loan from the DOE (the “DOE Loan”).
• With the Investment, Lithium Americas has achieved fully funded status for the development of Phase 1 of Thacker Pass at the project and corporate level for the duration of construction.
• The JV Partners announced FID for construction of Phase 1 of Thacker Pass. Completion of Phase 1 of Thacker Pass is targeted for late 2027.
• Contemporaneously with FID, GM and Lithium Americas contributed $100 million and $192 million in cash to the JV, respectively.

Jonathan Evans, Lithium Americas’ President and CEO said,

Today marks another important milestone in our journey to bring Thacker Pass to production.

” With our JV Partner, GM, we announced FID for Phase 1 alongside our other exceptional partners – the U.S. DOE and Orion. Together, we will develop a U.S.-produced lithium supply chain to reduce American dependence on foreign suppliers for critical minerals.”

ADVISORS

Evercore Group L.L.C. and Goldman Sachs & Co. LLC are acting as joint lead placement agents for Lithium Americas, and Vinson & Elkins LLP and Cassels Brock & Blackwell LLP are acting as legal counsel to Lithium Americas. Torys LLP and Davis Graham & Stubbs LLP are acting as legal counsel to Orion Resource Partners.

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Lithium Americas Announce FID for Thacker Pass Phase 1 and Closes Strategic Investment from Orion Resource Partners, source