The US government takes 5% of Lithium Americas

The US Department of Energy agreed to take a 5% stake in Lithium Americas and another 5% in its Thacker Pass joint venture with General Motors, through no-cost warrants. In return it eased the terms of its $2.26bn loan to the project. The shares jumped on the news.

Why it matters. When a state lender renegotiates, it can ask for equity, which dilutes existing shareholders.

Source

MINING.COM

In the course

Module 7: Funding a project