Lithium Americas Receives Final Decree, Approving the Development of
Its Cauchari-Olaroz Lithium Project
TORONTO, ONTARIO -- (Marketwire) -- 12/12/12 -- Lithium Americas
Corp. (TSX:LAC)(OTCQX:LHMAF) ("Lithium Americas" or the "Company") is
pleased to announce that it has received final project approval for
the construction of its Cauchari-Olaroz lithium/potash project.
Upon the recommendation of the Committee of Experts, the Jujuy
Government has executed the final decree, through the joint
resolution of the Production Minister and Secretary to the
Government, which approved the development of Lithium Americas'
Cauchari-Olaroz project. Such approval includes water use permitting,
confirmation of mining licences in good standing, environmental
approval for lithium and potash production, and all other permits
required to start project construction.
"Lithium Americas is very proud of advancing the Cauchari-Olaroz
project from discovery and exploration, through development, to fully
permitted in just short of 4 years," stated Dr. Waldo Perez,
President and CEO of Lithium Americas. "We continue to receive an
enormous level of support from multiple constituencies in Argentina.
We have worked extremely hard to garner this support, which has
served to accelerate the permitting and development of
Cauchari-Olaroz, as well as further de-risk the project. With the
permitting process concluded, our next milestone is securing project
financing and off take agreements, which will allow us to initiate
project construction in 2013."
About the Company
Lithium Americas is developing one of the world's largest and lowest
cost lithium operations. The Company has defined the world's third
largest lithium brine resource, and a completed definitive
Feasibility Study identified that Lithium Americas' operating cost
per tonne of lithium carbonate is expected to be one of the lowest in
the industry. Mitsubishi Corporation and Magna International are
shareholders in the Company, in addition to both companies having
off-take arrangements with Lithium Americas.
Cautionary Note and Forward-Looking Statements
This press release contains forward looking statements, which can be
identified by the use of statements that include words such as
"plan", "developing", "estimate", "coul
d", "potential", "believe",
"expect", "anticipate", "intend", "likely", "will" or other similar
words or phrases. Forward-looking statements express, as at the date
of this press release, the Company's plans, estimates, forecasts,
projections, expectations, or beliefs as to future events or results.
Forward-looking statements are based on certain assumptions,
including the key assumptions and parameters on which such estimates
are based, involve risks and uncertainties and there can be no
assurance that such statements will prove to be accurate. Therefore,
actual results and future events could differ materially from those
anticipated in such statements.
Factors that could cause results or events to differ materially from
current expectations expressed or implied by the forward-looking
statements, include, but are not limited to, possible variations in
mineral resource and reserve estimates, grade/concentration or
recovery rates, lithium or potash prices, operating or capital costs;
availability of sufficient financing to fund planned or further
required work in a timely manner and on acceptable terms; changes in
project parameters as plans continue to be refined; failure of
equipment or processes to operate as anticipated or other
unanticipated difficulties or interruptions; political, community
relations, regulatory, environmental and other risks of the mining
industry and other risks more fully described in the Company's Annual
Information Form dated May 28, 2012 and its most recent management's
discussion and analysis available on SEDAR. The Cauchari-Olaroz
project has no operating history upon which to base estimates of
future cash flow. The capital expenditures and time required to
develop any new project is considerable and changes in capital and/or
operating costs or construction schedules can affect project
economics. It is possible that actual capital and/or operating costs
may increase significantly and economic returns may differ materially
from the Company's estimates or that prices of lithium and/or potash
may decrease significantly or that the Company could fail to obtain
or maintain governmental approvals necessary for the operation of its
project or obtain project financing on acceptable terms and
conditions or at all, in which case, the project may not proceed
either on its original timing or at all. It is not unusual in the
mining industry for new mining operations to expe
problems during the start-up phase, resulting in delays and requiring
more capital than anticipated. Although the Company has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward looking statements, there
may be other factors that cause results to be materially different
from those planned, estimated, forecasted, projected or expected. The
Company does not intend, and does not assume any obligations, to
update forward-looking statements, whether as a result of new
information, future events or otherwise, unless otherwise required by
applicable securities laws. Readers should not place undue reliance
on forward looking statements.
Lithium Americas Corp.
Chief Financial Officer
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