Marval advises SQM over the transfer of SQM Potasio’s stake in Exar

Marval, O’Farrell & Mairal advised Sociedad Química y Minera de Chile S.A. (SQM) in the agreement to transfer to Ganfeng the entire stake of its subsidiary (SQM Potasio) in Minera Exar S.A. (Exar).

The mining company Exar owns the Caucharí-Olaroz lithium project in the province of Jujuy, Argentina.

The agreement signed on August 13 along with Lithium Americas, GFL International Co. Ltd. (Ganfeng) and Minera Exar, establishes that: 

(i) SQM Potasio will sell to Ganfeng its entire stake and other rights in Exar; 

(ii) Exar will prepay the total amount of the loans received from SQM Potasio; and 

(iii) SQM will receive payments for the services rendered to Exar during the development of the Project. 

According to the agreement, SQM and SQM Potasio will receive an approximate total amount of USD 87.5 million for all the concepts mentioned above. In addition, SQM Potasio will have the right to obtain a deferred amount of USD 50 million from the Ganfeng group, subject to compliance with certain product sales targets of the project.

Counsel list:

Sociedad Química Minera de Chile S.A.:

Marval, O’Farrell & Mairal acted as legal advisor to Sociedad Química Minera de Chile S.A., with partners Luciano Ojea Quintana, Leonardo Rodríguez and María Inés Brandt, and associates Matías Brouchy and Luciana Virgile. 

Winston & Strawn LLP advised Sociedad Química Minera de Chile S.A. in New York, with Allen Miller and César Galvez; while Blake, Cassels & Graydon LLP acted as legal advisor in Toronto with John Wilkin.

Lithium Americas:

Osler, Hoskin & Harcourt LLP acted as legal counsel to Lithium Americas with partners James Brown, Emmanuel Pressman and Kai D. Sheffield.Ignacio Celorrio acted as in-house counsel to the company. 

Ganfeng:

Simpson Thacher & Bartlett was legal advisor to Ganfeng in Hong Kong.