Argentina Lithium & Energy Corp. (TSXV: LIT | FSE: OAY3 | OTC: PNXLF) has announced the closing of the US$90M investment by Stellantis, as previously announced in the company’s news release dated 27 September 2023. Stellantis is one of the world’s leading automakers and mobility providers with iconic brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, RAM, Vauxhall, Free2Move, and Leasys.
Pursuant to the transaction, Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V., has invested US$90M in Argentina to acquire shares of ALE. Further, the company has granted Stellantis the right to exchange all of the ALE Shares for up to 19.9% of the outstanding common shares of Argentina Lithium in the future, subject to certain conditions set out in an exchange agreement. In connection with the Transaction, the parties have also entered into a lithium offtake agreement, a shareholders’ agreement with respect to ALE and, upon exercise of the exchange right, Argentina Lithium and Stellantis will enter into an investor rights agreement. The proceeds of the Transaction will be used to advance development of the company’s lithium projects held through its wholly owned subsidiary in Argentina, and for general corporate purposes.
As a result of the transaction, Stellantis owns 19.9% of the issued and outstanding ALE shares and Argentina Lithium owns 80.1%.
To read more about this, please visit www.argentinalithium.com
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