Lithium Americas makes $400 million offer to acquire Millennial Lithium, beats CATL offer

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(Kitco News) - Lithium Americas (TSX: LAC)(NYSE: LAC) announced Monday that it has submitted an unconditional offer toMillennial Lithium to acquire all of the outstanding shares of Millennial.

According to the company'sstatement, under the terms of the offer, on closing, each Millennialshareholder will receive C$4.70 per Common Share, payable in Lithium Americascommon shares and C$0.001 in cash per common share.

This represents totalconsideration of approximately US$400 million. Based on the company's closingprice on October 29, 2021, this consideration would result in MillennialShareholders owning approximately 9.9% of Lithium Americas, the company said.

"In proximity toCauchar?--Olaroz, Millennial's 100%-owned Pastos Grandes lithium brine projectrepresents an attractive regional growth opportunity for Lithium Americas,"said President and CEO Jonathan Evans.

Importantly, the companyadded that the board of directors of Millennial has unanimously determined thatthe offer constitutes a "Superior Proposal" in accordance with the terms of thearrangement agreement between Millennial and Contemporary Amperex Technology("CATL") dated September 28, 2021, as assigned and amended on October 12, 2021.

"Purchase price of C$4.70 percommon share payable in Lithium Americas common shares and C$0.001 in cash per commonshare represents a premium of C$0.85 (22.1%) per common share to the CATLAgreement and C$1.01 (27.4%) per common share to Millennial's closing price asof October 29, 2021," the company said in a statement.

Therefore, the company saidthat in accordance with the CATL Agreement, Millennial has notified CATL thatit considers the Lithium Americas' offer to be a Superior Proposal and that theten business day matching period has commenced, during which CATL has theright, but not the obligation, to propose to amend the terms of the CATLAgreement in order for the offer to cease to be a Superior Proposal.

Lithium Americas is adevelopment-stage company with projects in Jujuy, Argentina and Nevada, UnitedStates.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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