Lithium Stocks Rising on China’s Argentina Acquisitions, Here Are 4 Companies in Their Crosshairs
A new ‘White Gold Rush’ in Argentina’s northern portion of what is known as the Lithium Triangle is underway, and it’s being accelerated by Chinese interests. Most recently, Chinese copper and gold mining giant Zijin Mining Group Company Limited (OTC:ZIJMF) acquired Canadian Neo Lithium Corp. (OTC:NTTHF) (TSXV:NLC) which experts in Canada are predicting will trigger a full national security review. As demand increases for the metals needed for the manufacturing of batteries for electronics and EVs, it’s worth looking at Neo Lithium Corp., as well as Lithium Americas Corp. (NYSE:LAC) (TSX:LAC), Livent Corporation (NYSE:LTHM), and Orocobre Limited (OTC:OROCF) (TSX:ORL).
Neo Lithium Corp. (OTC:NTTHF) (TSXV:NLC)
Since the announcement of the Zijin Mining Group Company Limited (OTC:ZIJMF) acquisition, shares of Neo Lithium Corp. (OTC:NTTHF) (TSXV:NLC) have risen more than 14%. As per the terms of the deal, Zijin has agreed to acquire all of the outstanding shares of Neo Lithium at a price of C$6.50, which at the time of the announcement represented approximately 36% over Neo Lithium’s 20-day volume-weighted average price at October 8, 2021.
The total cash consideration for all of the outstanding equity of Neo Lithium—which included the 3Q lithium brine project in Catamarca, Argentina—is approximately C$960 million (~US$771.5 million).
Lithium Americas Corp. (NYSE:LAC) (TSX:LAC)
Earlier this summer, Gangfeng Lithium acquired a majority stake in the Caucharí-Olaroz Project from SQM, while leaving 49% held by Lithium Americas Corp. (NYSE:LAC) (TSX:LAC).
As per Lithium Americas’ most recent Q2 2021 results, the company reaffirmed that construction at Caucharí-Olaroz remain on track to achieve first production by mid-2022 on the initial 40,000 tonnes per annum operation.
Livent Corporation (NYSE:LTHM)
On its second quarter earnings release, Livent highlighted its resumption of capacity expansion under development in Argentina. Now associated with BMW, the Salar del Hombre Muerto salt flat has a production capacity of 20,000 tonnes of lithium equivalent per year, and plans to double this with an investment of US$640 million.
Orocobre Limited (OTC:OROCF) (TSX:ORL)
Orocobre is coming off of a massive $6 billion merger with Galaxy Resources from earlier this year. On its Salar de Olaroz flats project, Orocobre has a partnership with Japanese Toyota Tsusho and the provincial company Jujuy Energía y Minería Sociedad del Estado (JEMSE).
Orocobre’s and Livent’s projects are the only two currently producing lithium projects in Argentina out of a total of over 60 proposed projects in various stages of development.