Cauchari-Olaroz Lands US$220 Million to Fund Its Lithium Expansion
Argentina · Mining Key Facts Debt closed US$220 million in new unsecured project debt for Cauchari-Olaroz, split US$50 million (June) and US$170 million (August). Ownership split Minera Exar is 46.7% Ganfeng Lithium, 44.8% Lithium Argentina, 8.5% JEMSE (Jujuy state). Guarantee structure Ganfeng guarantees the debt; Lithium Argentina counter-guarantees 49% of the outstanding amount. Stage 2 […]…
A US$220 million debt package, jointly managed by Ganfeng Lithium and Lithium Argentina, is funding the expansion of the Cauchari-Olaroz lithium operation in Argentina without affecting shareholders. The financing is structured as two tranches: US$50 million for a two-year term, and US$170 million for a three-year term, both with interest rates under 5%.
Ganfeng holds the largest stake at 46.7%, while Lithium Argentina owns 44.8%, and the provincial government of Jujuy owns 8.5%. The project is jointly controlled by the two companies, with Ganfeng acting as the technical operating partner. The debt is unsecured, indicating confidence in the project's cash flow and Ganfeng's guarantee.
The expansion plan starts with a 10,000-tonne-per-year direct lithium extraction (DLE) module, targeting 45,000 tonnes per year of lithium carbonate equivalent by the end of Stage 2. This cautious approach allows the partners to add capacity in stages, avoiding significant dilution of existing shareholders in a low lithium price environment.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
