Lithium Americas discusses DOE loan conditions with federal agency

Lithium Americas Corp. (NYSE: LAC) said it is in discussions with the U.S. Department of Energy and General Motors Holdings LLC regarding the first draw on its previously announced $2.26 billion federal loan.

The company said the discussions involve certain conditions precedent to draw on the DOE loan and associated loan specifics. The DOE has made incremental requests for potential further conditions to first draw and potential amendments to the loan and associated transaction documents, according to the company's statement.

Lithium Americas said it continues to work with the DOE and GM regarding proposals for a mutually agreeable resolution. The company issued the statement in response to media reports about the status of the federal loan.

The loan is intended to support development of the Thacker Pass lithium project in Humboldt County, northern Nevada. The project is owned by a joint venture between Lithium Americas, which holds a 62% interest and manages the project, and GM, which holds a 38% interest.

Lithium Americas is advancing Phase 1 of Thacker Pass toward production, targeting nominal design capacity of 40,000 tonnes per year of battery-quality lithium carbonate. The company states that Thacker Pass hosts what it describes as the largest known measured lithium resource and reserve in the world.

Construction of the project is expected to create nearly 2,000 direct jobs, including 1,800 skilled contractors, according to the company. Lithium Americas and its engineering contractor Bechtel have entered into a National Construction Agreement with North America's Building Trades Unions for construction of the project.

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