ZUG, Switzerland, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Lithium Argentina AG (“Lithium Argentina” or the “Company”) (TSX: LAR) (NYSE: LAR) today announced that the Cauchari-Olaroz lithium brine operation, held through Minera Exar S.A. (“Cauchari-Olaroz” or the “Operation”), has closed on $220 million of new unsecured debt facilities (“Debt Facilities”), further strengthening its financial position and enhancing funding flexibility as it continues to advance an expansion plan to increase production capacity by an additional 45,000 tonnes per annum of lithium carbonate equivalent (“Stage 2”). All monetary amounts in this news release are expressed in U.S. dollars.
The Debt Facilities consist of:
- $50 million facility: closed in June 2026 with a two-year term, to replace existing short-term credit facilities.
- $170 million facility: closed in August 2026, with a syndicate of international banks. The $170 million credit facility has a three-year term with an interest rate under 5%.
Sam Pigott, CEO of Lithium Argentina, commented: “These financings – unsecured and attractively priced - reflect confidence in Cauchari-Olaroz, the strength of our partnership with Ganfeng and the strong cash flow generation from the Operation. Together with the recent RIGI approval, the new Debt Facilities strengthen our balance sheet and provide the funding flexibility to advance our long-term growth strategy. We look forward to sharing further detail on Stage 2 as we complete the updated development plan in the coming months.”
The Debt Facilities are unsecured, provide flexibility for further distributions from Cauchari-Olaroz, support additional debt capacity (including project debt) and are available for drawdown until second quarter of 2027. They are supported by a guarantee from Ganfeng Lithium Co., Ltd (“Ganfeng”) with Lithium Argentina providing a counter-guarantee to Ganfeng for 49% of the debt outstanding.
The Debt Facilities form part of Lithium Argentina’s broader strategy to optimize its capital structure by utilizing debt financing at the operating asset level, while reducing debt at the corporate level. This approach is expected to improve financing efficiency and provide additional flexibility from both tax and foreign exchange management perspectives.
Next Steps
The Company continues to advance Stage 2 and the recent approval of the Stage 2 RIGI application further enhances the project's development profile. Upcoming milestones related to the growth plans at Cauchari-Olaroz include:
- Stage 2 permitting: the environmental permit application was submitted in December 2025, underpinned by the completion of a basin-wide hydrogeological resource model that supports the Stage 2 production capacity.
- Stage 2 development plan: technical and engineering studies are ongoing, with results of an updated development plan expected in the coming months.
ABOUT LITHIUM ARGENTINA
Lithium Argentina is a producer of lithium carbonate for use primarily in lithium-ion batteries and electric vehicles. The Company, in partnership with Ganfeng Lithium Group Co., Ltd. (“Ganfeng”) operates the Cauchari-Olaroz lithium brine operation in the Jujuy province of Argentina and is advancing PPG in the Salta province of Argentina. Lithium Argentina currently trades on the TSX and on the NYSE under the ticker “LAR”.
Cauchari-Olaroz is 44.8% owned by the Company, 46.7% by Ganfeng and 8.5% by JEMSE, a mining investment company owned by the government of Jujuy Province in Argentina.
For further information contact:
Investor Relations
Telephone: +1 778-653-8092
Email: kelly.obrien@lithium-argentina.com
Website: http://www.lithium-argentina.com
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” and “forward-looking statements” (which we refer to collectively as forward-looking information) under the provisions of applicable securities legislation. Forward-looking information can be identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “propose”, “potential”, “target”, “intend”, “could”, “might”, “should”, “believe”, “scheduled”, “implement” and similar words or expressions. All statements, other than statements of historical fact, are forward-looking information. Forward-looking information in this news release include, without limitation, information with respect to the following matters or the Company’s expectations relating to such matters: the expected benefits of the Debt Facilities on, among other things, the Company’s financial position and flexibility to advance its long-term growth strategy; the drawdown of the Debt Facilities; further financing of and distributions from Cauchari-Olaroz; Stage 2 permitting and the Stage 2 development plan; the benefits of the approval of Stage 2 expansion at Cauchari-Olaroz under RIGI; the Company’s financing strategy and the benefits therefrom; and the timing and amount of future production, capacity and anticipated costs.
Forward-looking information may involve known and unknown risks, assumptions and uncertainties which may cause the Company’s actual results or performance to differ materially. This information reflects the Company’s current views with respect to future events and is necessarily based upon a number of assumptions that, while considered reasonable by the Company today, are inherently subject to significant uncertainties and contingencies, and accordingly, the Company can give no assurance that these assumptions and expectations will prove to be correct. With respect to forward-looking information included in this news release, the Company has made assumptions regarding, among other things: expected benefits of the Debt Facilities; current technological trends; the business relationship between the Company and Ganfeng Lithium Group Co. Ltd.; ability to fund its operations; the ability to operate in a safe and effective manner; uncertainties relating to obtaining and/or maintaining mining, exploration, development, environmental and other permits or approvals in Argentina; demand for lithium; impact of increasing competition in the lithium business, including the Company’s competitive position in the industry; general economic conditions; stability and support of legislative, regulatory and community environment in the jurisdiction where it operates; estimates of and changes to market prices for lithium and commodities; estimated costs for the project or operation; estimates of mineral resources and mineral reserves, including whether mineral resources will ever be developed into mineral reserves; reliability of technical data; and the ability to achieve full production; and accuracy of budget and estimates. Forward-looking information also involves known and unknown risks that may cause actual results to differ materially, these risks include, among others: the benefits of the Debt Facilities and the Company’s financing strategy may not be realized as anticipated, or at all; possible delays of Stage 2; the benefits of the approval of Stage 2 expansion at Cauchari-Olaroz under RIGI may not be realized as anticipated, or at all; the benefits of RIGI may not be realized as anticipated, or at all; the operations may not operate and produce as planned; cost overruns; market prices affecting development of the operation; risks associated with co-ownership arrangements; risks with ability to successfully secure adequate financing if necessary; risks to the growth of the lithium markets; lithium prices; inability to obtain any future required governmental permits and that operations may be limited by government-imposed limitations; technology, cyber security and artificial intelligence risk; inability to achieve and manage expected growth; geopolitical risks, including resulting from conflicts in the Middle East and elsewhere; political risk associated with foreign operations, including co-ownership arrangements with foreign domiciled partners; emerging and developing market risks; operational risks; changes in government regulations; changes in environmental requirements; failure to obtain or maintain necessary licenses, permits or approvals; insurance risk; receipt and security of mineral property titles and mineral tenure risk; changes in project or operation parameters; uncertainties associated with estimating mineral resources and mineral reserves, including uncertainties regarding assumptions underlying such estimates; whether mineral resources will ever be converted into mineral reserves; opposition to the Company’s projects; geological or technical or processing problems; liabilities and risks; health and safety risks; unanticipated results; unpredictable weather; unanticipated delays; reduction in demand for lithium; inability to generate profitable operations; restrictive covenants in debt instruments; intellectual property risks; dependency on key personnel; currency and interest rate fluctuations; and volatility in general market and industry conditions. Additional risks, assumptions and other factors are set out in the Company’s management’s discussion and analysis and most recent Annual Report on Form 20-F, copies of which are available on SEDAR+ at www.sedarplus.ca and EDGAR.
Although the Company has attempted to identify important risks and assumptions, given the inherent uncertainties in such forward-looking information, there may be other factors that cause results to differ materially. Forward-looking information is made as of the date hereof and the Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Accordingly, readers are cautioned not to place undue reliance on forward-looking information.
