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Argentina Lithium Closes US$90 Million Investment by Stellantis in ARS$ Equivalent

 

Vancouver, BC / CNW / October 5, 2023 / Argentina Lithium & Energy Corp. (TSX-V: LIT, FSE: OAY3, OTC: PNXLF), (“Argentina Lithium” or the “Company”) is pleased to announce closing of the US$90 million1 investment in AR$ equivalent in Argentina Litio y Energia S.A. (“ALE”) by Stellantis (defined below) (the “Transaction”), as previously announced in the Company’s news release dated September 27, 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. (“Stellantis”), has invested the ARS$ equivalent of US$90 million1 in Argentina to acquire shares of ALE (the “ALE Shares”). Further, the Company has granted Stellantis the right (the “Exchange Right”) to exchange all of the ALE Shares for up to 19.9% of the outstanding common shares of Argentina Lithium (on an undiluted basis) 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%.

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