Date Announced

November 03, 2022

Lead Office

Toronto

On November 3, 2022, Lithium Americas Corp. ("Lithium Americas") announced their intention to advance a reorganization by separating its North American and Argentine business units into two independent public companies. The North American focused lithium company will be called Lithum Americas (NewCo), and will own the Thacker Pass lithium project in Humboldt County, Nevada and the Company’s North American investments. The Argentina focused lithium company will be called Lithium International and will own Lithium Americas’ current interest in its Argentine lithium assets, including the near-production Caucharí-Olaroz lithium brine project in Jujuy, Argentina.Through a separation, the respective business units are expected to benefit from strategic focus and enhanced operating flexibility to drive long-term growth and value.

On January 31, 2023, Lithium Americas announced that General Motors Corp. will invest $650 million in Lithium Americas, to jointly develop the Thacker Pass mine in Nevada, which is the largest known source of lithium in the United States and the third largest in the world.

Following the separation (also known as a de-merger or spin-off transaction), which will be effected as a tax-deferred “butterfly” transaction by way of a Court-approved plan of arrangement, each of the two resulting companies will be listed on the TSX and NYSE.

Lithium Americas, headquartered in Vancouver, BC, is a mining company focused on advancing lithium projects in Argentina and the United States to production.

McCarthy Tetrault advised Lithium Americas with a team led by Robert Richardson that included Jennifer Longhurst, Michael Eldrige, Michael Alty (Business), Christine Ing (Technology), Kathryn Walker, Jeff Oldewening, Raj Juneja and Kabir Jamal (Tax).