Lithium Americas Corp. [LAC-TSX, NYSE] on Wednesday, January 20 said an underwritten public offering of 15.9 million shares that is expected to raise US$350 million has been priced at US$22 a share.
The company said a syndicate of underwriters led by Canaccord Genuity has been granted an over-allotment option to purchase an additional 2.27 million shares at the issue price. The option remains open for 30 days after the date of closing, which is set for January 22, 2021.
The net proceeds from the offering are intended to be used to fund development at Lithium America’s Thacker Pass lithium project in Nevada.
Lithium America shares declined on the news, falling 17% or $5.80 to $28.26 on volume of 2.24 million. The shares are currently trading in a 52-week range of $36.60 and $2.90.
The company recently completely the permitting process for Thackers Pass, a feasibility-stage lithium project located in Humbolt County, northern Nevada. The project is situated at the southern end of the McDermitt Caldera, approximately 100 km north of Winnemucca.
In 2018, Lithium Americas completed a pre-feasibility study (PFS) on a two-phase project with a production capacity designed to reach 60,000 tonnes annually of battery-grade lithium carbonate (Li2C03) and 46-year mine life.
The PFS envisaged initial phase one production capacity of 30,000 tonnes annually of battery grade lithium carbonate, commencing in 2022 and increasing in phase two to 60,000 tonnes annually by 2026. The project will be developed as an open-pit mining operation using conventional continuous mining equipment.
The company recently said it was assessing changes to the parameters of its feasibility study to target a higher production capacity than 20,000 tonnes of lithium carbonate equivalent and a revised product mix than was previously considered.
As a result, the scheduled timing of completion of the feasibility study will be adjusted once the company has determined the targeted initial capacity and product mix that more accurately reflects market needs.
Lithium Americas and Chinese partner Ganfeng Lithium Co. Ltd. have been working to advance the Cauchari-Olaroz Project in Argentina with target production of 40,000 tonnes per annum of battery-quality lithium carbonate. The Cauchari-Olaroz project is located in the heart of the Puna Plateau, an area where over 80% of the world’s lithium brine reserves are located. This area is also known as the “Lithium Triangle.”