- Arena Minerals (AN) has closed the final tranche of its C$10 million offering with Ganfeng Lithium and Lithium Americas (LAC)
- The company issued 28,571,428 units for an aggregate consideration of C$4 million
- This includes 26,678,571 units to GFL International, a subsidiary of Ganfeng Lithium, for a consideration of C$3.735 million
- Arena and Ganfeng have entered into a joint venture for the exploration and development of the Sal de la Puna Project in Argentina
- The venture agreement provides for project funding with a board and management committee made up of members from each shareholder
- Arena Minerals is a mineral exploration company focused on copper and lithium projects in Chile and Argentina
- Arena Minerals (AN) closed down by 8.22 per cent trading at $0.335 per share
- Lithium Americas (LAC) closed up by 3.55 per cent trading at $31.46 per share
Arena Minerals (AN) has closed the final tranche of its C$10 million offering with Ganfeng Lithium and Lithium Americas (LAC).
The company issued 28,571,428 units for an aggregate consideration of C$4 million, including 26,678,571 units to GFL International, a subsidiary of Ganfeng Lithium, for a consideration of C$3.735 million.
In the first tranche, which closed on July 26, 2021, the company issued 42,857,143 units to Lithium Americas for aggregate consideration of C$6 million.
Lithium Americas now holds 42,857,143 common shares and 21,428,571 warrants in the company, while Ganfeng Lithium holds 66,226,146 common shares and 33,113,072 warrants.
The private placement was initially announced on July 12, 2021.
William Randall, Arena’s President and CEO, stated,
“Given the continued international interest in the Pastos Grandes Basin, closing this second and final tranche is a key step, as it provides Arena with funds to initiate an aggressive resource definition drill program. The Sal de la Puna Project is a key claim block in the basin, not only its lithium brine resource potential and extensive land position, but also its potential large freshwater resources.
Along with our partners Ganfeng Lithium, we are in the final stages of planning our upcoming drill program and will be communicating the commencement of exploration activities in the near future.”
Sal de la Puna joint venture
Arena and Ganfeng have entered into a joint venture for the exploration and development of the Sal de la Puna Project in Argentina, holding 65 per cent and 35 per cent, respectively, in a newly incorporated joint venture company. Ganfeng contributed US$7,789,055 to acquire its stake in the venture.
The agreement provides for project funding in proportion to the parties’ respective interests.
The venture’s board is comprised of two Arena nominees and one Ganfeng nominee, while its management committee is comprised of two representatives from each shareholder.
As long as a shareholder holds at least 20 per cent of the joint venture, unanimous management committee approval is required for a variety of matters, including the approval of or any changes to budgets or work programs, the replacement of the operator and various significant transactions, major expenditures or changes to the joint venture company or its business.
Arena Minerals is a mineral exploration company focused on copper and lithium projects in Chile and Argentina.
Arena Minerals (AN) closed down by 8.22 per cent trading at $0.335 per share.
Lithium Americas (LAC) closed up by 3.55 per cent trading at $31.46 per share.