I don’t think there’s has been enough attention/discussion on this forum about the potential spin-off and ATVM Loan Program and the affect thereof.

I realize there are many unknowns but I find it helpful to hear what others might be thinking.

Here are a few concerns I have:

1.       Spin-off

A.      Thacker Pass spinning off to form an independent company?

a.       If so then where do Jon Evan(CEO) and Eduard Epshtein (CFO) preside? LAC or Thacker Pass?

b.      Where does the cash on the books go?

c.       What happens to Thacker Pass Share Price moving forward while in LPO (Loan Programs Office) phase (1 year), then construction phase (2 years), then qualifying lithium and ramping phases I to full production of 40 tpa (1 - 2 years).  These accounts for 4-5 years without revenue? So 2026 -2027 without revenue.

B.      How will our shares be treated? (No clarity on this as there are so many variations to a spin-off). Jon says he will let the investors decide how they feel after a spin-off.

a.       Will we own shares in 2 companies?

b.      Will we have a say, not likely?

c.       What will the cost basis of each company be? LAC is not a big company to begin with.

d.      How long will this take and how long are our shares not accessible?

C.      What happens to our options? LAC is a small company with limited options available for trading already.

D.      How will institutional investors feel about these two small companies especially if this is done prior to Du’s decision that’s already seen long delays.

E.       Which company do you want to hold? One with no revenues for 5 years (TP) or a partial Chinese-owned company that’s selling lithium within 12 months at 2x or even 3x the original FS of $12,000/t price with accelerated phase II timeframe. I believe the off takes are at market pricing. They have some lock-in period (term) I imaging before adjusting to market value.

2.        ATVM Loan Program

 https://www.energy.gov/sites/default/files/2020/01/f70/DOE-LPO-ATVM-Jan2020.pdf

a.       This took Tesla over a year to process in 2012. Tesla considered an additional loan through LPO to fund the Model S ramp up but ultimately decided to forgo because of the extreme time delay of working with the federal government? I doubt very seriously it’s going to take this said 8 months.

b.      Does Thacker Pass spin-off need to be completed before the Formal Application Process of ATVM? Is this another delay? Doesn’t seem this spin-off idea is a requirement for ATVM program. Is there some internal disagreement?

3.       Will GNENF buy out LAC entire South America interest leaving LAC intact (North America management along with Jon who presides in Atlanta) with one Thacker Pass asset?

Spin-offs are typically good for shareholders but there are many examples of where this didn’t work out so well for us shareholders.  

I originally invested in LAC with the expectation of revenues coming soon from Phase I ramp-up of C-O with a second phase on the horizon which has the funding in place. These C-O revenues were supposed to in part help fund Thacker Pass Phase I. I was taken back to hear about additional acquisitions of Pastos Grandes formally Millennial and Arena in South America which detracts from the funds received while diluting LAC after SP hit $41.56 (US) back in Nov. 2021. There are lots of unknowns and a few more pilling up.