28 March 2016
VIEW FULL PRESENATION FROM LITHIUM AMERICA
Lithium Americas Corp
Suite 1100 - 355 Burrard St.
Vancouver, BC Canada V6C 2G8
778-656-5820
IR Contact
ir@lithiumamericas.com
DETAILS
Sociedad Química y Minera de Chile S.A. (“SQM”)
is pleased to announce a definitive agreement
to enter into a 50/50 joint venture
to develop the Caucharí-Olaroz lithium project in Argentina.
This joint venture went into effect
following a capital contribution of US$25 million by SQM
in exchange for a 50% ownership stake
in Minera Exar,
a wholly owned subsidiary of LAC.
This amount includes US$15 million
to cover intercompany loans
between Minera Exar and LAC; the remaining US$10 million
will be allocated to project development.
SQM and LAC intend to immediately advance
a work and engineering plan, which contemplates
completion of an updated definitive feasibility study
based on an existing study for Caucharí
that was completed by Minera Exar in 2012.
The updated study will evaluate economic feasibility
for a project with
a nameplate production capacity of approximately
40,000 metric tons per year of lithium carbonate equivalent.
Depending on the results of the study, the project
may be executed in stages.
SQM estimated that global demand for
lithium chemicals totaled approximately
150,000 metric tons of lithium carbonate equivalent in 2015,
and the Company expects
demand growth of approximately 10% in 2016.
Sales of lithium and lithium derivatives from
SQM’s existing operation in Chile
accounted for 13% of revenues in 2015.
Patricio de Solminihac,
Chief Executive Officer of SQM
“SQM is committed to the lithium business,
both in Chile and abroad.
The Salar de Caucharí is a great complement
to our existing lithium operations in Chile, and it is located
just a few hundred kilometers from the Salar de Atacama.
We expect to have similar production processes at both sites,
and as a result we should benefit from operating synergies.”
For further information, contact:
Gerardo Illanes 56-2-24252022 / gerardo.illanes@sqm.com
Kelly O’Brien 56-2-24252074 / kelly.obrien@sqm.com
Carolyn McKenzie 56-2-24252280 / carolyn.mckenzie@sqm.com
For media inquiries, contact:
Carolina García Huidobro / carolina.g.huidobro@sqm.com
Alvaro Cifuentes / Alvaro.cifuentes@sqm.com
Tamara Rebolledo / Tamara.rebolledo@sqm.com
(Northern Region)
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