Lithium Americas secures $175M convertible debenture financing

Lithium Americas Corp. (NYSE: LAC) has entered into a securities purchase agreement with YA II PN, Ltd., an affiliate of Yorkville Advisors Global, LP, for up to $175 million in subordinated convertible debentures, according to a company statement.

The company will issue $150 million in debentures upon filing its quarterly report on Form 10-Q for the period ended June 30, 2026. Lithium Americas retains the option to issue an additional $25 million in debentures in one or more subsequent closings at its discretion, subject to conditions outlined in the purchase agreement. The company has also agreed to suspend sales under its at-the-market equity program for 30 days following the initial closing.

Proceeds will be used for general corporate purposes, including project and corporate overhead expenses, capital expenditures, repayment of indebtedness, and additions to working capital. The financing is intended to support continued development of the Thacker Pass lithium project in Humboldt County, Nevada.

The new financing supplements the project's existing $2.23 billion U.S. Department of Energy loan and strategic investments from General Motors Holdings LLC and funds managed by Orion Resource Partners. Thacker Pass is a joint venture in which Lithium Americas holds a 62% interest and General Motors holds 38%.

Phase 1 of Thacker Pass is designed for a nominal production capacity of 40,000 tonnes per year of battery-grade lithium carbonate, with mechanical completion targeted for late 2027. The company reported more than 1,600 personnel currently on site.

Jonathan Evans, President and Chief Executive Officer, said the debentures "will provide the Company with additional financial flexibility as we advance through peak construction while navigating global macroeconomic and geopolitical pressures."

Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Lithium Americas. Vinson & Elkins LLP and Cassels Brock & Blackwell LLP are serving as legal counsel.

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