Lithium Argentina (TSX: LAAC) is seeking to redomicile to Switzerland and change its name to Lithium Argentina AG following a corporate review and a new agreement with investor Ganfeng Lithium, the company said Friday.

The company decided Switzerland was the best jurisdiction on strategic, commercial and legal grounds, would provide expanded financing flexibility, and support its long-term growth plans. It also aims to move the Lithium Argentina group of companies’ operational headquarters to Buenos Aires.

Ganfeng Lithium, its joint venture partner in the Caucharí-Olaroz project, has entered into a three-year standstill agreement with the Canadian company, it said Friday. Ganfeng has agreed that it won’t acquire or facilitate the acquisition of a controlling interest in the company. Ganfeng holds a 46.7% stake in the project that started production last year, and Lithium Argentina holds 44.8%. 

The move to the low-tax Canton of Zug, is still subject to shareholder, stock exchange and court approval but could happen early next year.

Exodus to Switzerland?

The company’s plans come just over one week after another Canadian miner, Solaris Resources (TSX: SLS; NYSE: SLSR), said its own move to Zug from Canada is advancing. The Toronto-based Solaris is leaving Canada after the federal government earlier this year began a national security review of China’s Zijin Mining’s plan to invest $130-million in its Warintza project in Ecuador. Solaris cancelled the deal, and decided to avoid such reviews by redomiciling. It at first said it would move to Quito, Ecuador’s capital.

Two years ago, Ottawa forced Chinese investors to divest from several lithium juniors with assets outside of Canada based on national security concerns. And in June, the government diverted a sale of $3 million worth of stockpiled rare earths mined in the Northwest Territories from a Chinese company to the Saskatchewan Research Council.

The Canadian company said it would continue to trade on North American markets and be subject to public company reporting requirements under Canadian and U.S. securities laws.

A special meeting of shareholders to vote on the move is planned for Jan. 17. Company shares gained 1.6% to C$4.79 apiece on Friday in Toronto, valuing the company at C$775.6 million ($553.5m). Its shares traded in a 52-week range of C$2.82 and C$8.82.

Source: MINING.COM – Read More