Lithium Argentina closes $180 million investment
Full story: https://grafa.com/en/news/united-states/lithium-argentina-closes-180-million-ganfeng-investment
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Lithium Argentina completed a $180 million strategic investment from Ganfeng through a convertible note.
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The funds will be used with existing cash to repay $259 million in convertible notes due in 2027.
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Ganfeng could increase its ownership stake to about 16.1% if the note is fully converted.
Lithium Argentina (NYSE:LAR) completed a $180 million strategic investment from Ganfeng through a six-year unsecured convertible note to refinance debt and extend its maturity profile.
The note carries a 4% annual coupon, matures six years after issuance, and is convertible into Lithium Argentina common shares at a conversion price of $12.50 per share.
Lithium Argentina said net proceeds from the investment, together with cash on hand, will be used to repay its $259 million convertible notes due January 2027, while Ganfeng currently owns approximately 9.6% of the company’s common shares.
Lithium Argentina said Ganfeng would receive approximately 14.4 million additional shares if the convertible note is fully converted, resulting in an estimated 16.1% ownership stake on a fully diluted basis.
Lithium Argentina is focused on developing lithium resources in Argentina, including the Pozuelos-Pastos Grandes project being advanced through a joint venture with Ganfeng.
The company said the Pozuelos-Pastos Grandes consolidation joint venture remains on track for completion by the end of September 2026.
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