VANCOUVER (miningweekly.com) – Argentinia President Mauricio Macri last week reaffirmed government support for the construction of the Cauchari-Olaroz lithium project.
The project is 100%-owned by Minera Exar, which is a 50:50 joint venture company between junior lithium firm Lithium Americas and Sociedad Quimica y Minera de Chile (SQM).
TSX-V-listed Lithium Americas said in a statement on Wednesday that Macri and governor of the Jujuy province Gerardo Morales repeated their commitment to support the development of the $425-million Cauchari-Olaroz project on Thursday, during a meeting in Buenos Aires.
"We are receiving full support from the Federal and Provincial governments and we are very pleased with the progress we are making on the development of the project," said Lithium Americas president of South American operations Gabriel Rubacha in a statement, adding that there are over 100 people currently on site and that the Minera Exar organisation is growing with the recent recruitment of additional executive level personnel.
“Minera Exar is proceeding with the development of the project and progressing with the early construction activities following a timeline target of being in production by 2019,” he noted.
The company reported that development activity was ongoing and focused on campsite construction, added hydrological tests, drilling campaigns and testing pond liner materials at the site. The construction team is developing the detailed design as well as working with the evaluation of the first construction packages.
Construction of the first stage of 25 000 t/y of lithium carbonate production capacity is expected to be completed in 2019.
During March 2016, SQM invested $25-million in Minera Exar for a 50% stake in the Cauchari-Olaroz project.
To fund Lithium Americas' share of Cauchari-Olaroz capital costs, the company closed a strategic financing on June 7 with GFL International, a subsidiary of Jiangxi Ganfeng Lithium, to provide $172-million in financing. A second financing of about $112-million from BCP Innovation, a subsidiary of Bangchak Corporation Public Company, is expected to close by mid-July.
As part of the Bangchak strategic financing, Bangchak president and CEO Chaiwat Kovavisarach has been included in the management slate for the board to be elected at the company's upcoming annual general meeting on August 14.