Date Closed

October 4, 2023

Lead Office

Vancouver

Value

90.00 Million USD

On October 4, 2023, Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V. ("Stellantis"), acquired a 19.9% shareholding in Argentina Litio y Energia S.A. (“ALE”), a subsidiary of Argentina Lithium & Energy Corp. (TSXV: LIT) (FSE: OAY3) (OTC: PNXLF), ("Argentina Lithium") in exchange for the ARS$ equivalent of US$90 million. The proceeds of the transaction will be used to advance development of the company's lithium projects in Argentina, and for general corporate purposes. Further, Argentina Lithium granted Stellantis the right to exchange all of the ALE shares for up to 19.9% of the outstanding common shares of Argentina Lithium, subject to certain conditions.

In connection with the acquisition, ALE and Stellantis have entered into a Lithium Offtake Agreement (the "Offtake Agreement"). Under the Offtake Agreement, ALE has agreed to sell to Stellantis, and Stellantis has agreed to purchase from ALE up to 15,000 tonnes per annum of lithium produced by ALE over a seven-year period, subject to extension by mutual agreement after the initial seven-year term.

The transaction also involved the negotiation of a shareholder agreement to apply at the ALE level, an exchange agreement governing the exchangeability of the ALE shares, and an investor rights’ agreement to apply at the Argentina Lithium level.

Stellantis is a leading automobile and mobility provider, products and services include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, RAM, Vauxhall, Free2Move and Leasys. Stellantis plans to become carbon net zero by 2038. Lithium is an essential raw material for vehicle electrification, and mass electrification is a key component of Stellantis’s decarbonization plan. This strategic investment by Stellantis aims to secure part of its lithium demand once commercial production commences.

McCarthy Tétrault advised FCA Argentina S.A., the Argentine unit of Stellantis, with a team led by Shawn Doyle that included Peter Quon, Alexandra Comber, Josh Friedman, Eric Driver (Corporate), Jeremy Ho, Matthew Kraemer, Colton Dennis (Tax), and Michael Caldecott (Competition/Antitrust & Foreign Investment).