Magna International
Summary of Off-Take Arrangement with Magna:
- Conditional on exercising its pre-emptive right in respect of future equity financings in a manner which enables it to maintain a minimum 9.9% equity interest in Lithium Americas, Magna will have the option to enter into an off-take arrangement entitling Magna to acquire up to 25% of the Company’s lithium production
- The off-take option is conditional on Magna agreeing to provide an interest free loan or credit facility in a principal amount equal to that percentage of the capital costs of bringing Lithium Americas’ lithium property into commercial production that is equal to the minimum percentage of lithium production to be acquired by Magna
For a more detailed review of Magna’s off-take arrangement with Lithium Americas, please refer to our Prospectus dated May 6, 2010