Lithium Argentina (TSX: LAAC) shareholders have approved the company’s plan to redomicile to Switzerland from Canada, seeking to retain a Chinese investor in the face of Ottawa’s concerns over resource ownership.
The move is expected to become effective Jan. 23, subject to approvals such as a final court order from the Supreme Court of British Columbia, the company said after markets closed on Friday.
“We appreciate our shareholders’ vote of confidence in our strategy which aims to strengthen Lithium Argentina’s position with expanded financial and strategic flexibility going forward,” president and CEO Sam Pigott said in a release.
Lithium Argentina’s main holding is the Caucharí-Olaroz project, where it has 44.8% to Ganfeng Lithium’s 46.7%. The project began producing in 2023 and the Chinese company has agreed it won’t acquire its partner or a controlling interest.
Divest order
In 2022, Ottawa forced Chinese investors to divest from several lithium juniors with assets outside of Canada based on national security concerns. Last year, Solaris Resources (TSX: SLS; NYSE: SLSR) said it was moving to Swizerland from Canada because of a national security review. China’s Zijin Mining wanted to invest $130-million in its Warintza project in Ecuador.
Lithium Argentina is going to the same Swiss city, Zug, a tax haven, as Solaris. It aims to move its operational headquarters to Buenos Aires. Its shares are to remain listed in Toronto and New York.
The company’s stock closed 1.4% firmer on Friday at $4.34 apiece, valuing the company at $700 million. It’s traded in a 52-week range of $2.83 to $7.85.
“Our team is focused on strengthening operations in Argentina, building on strong production at Caucharí-Olaroz, while enhancing efficiency and advancing growth to solidify our role in the electromobility supply chain,” Pigott said.
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