GFL International, a wholly-owned subsidiary of Ganfeng Lithium Group Co (HKG:1772, SHE:002460) plans to invest $180 million in Lithium Argentina Corp by subscribing to six-year term unsecured convertible debentures , according to a Monday filing to the Hong Kong stock exchange.

The company's shares were down nearly 3% in Tuesday's trade.

The debentures will carry an interest rate of 4% per annum accrued daily from the issue date and will be payable semiannually in arrears, with the first interest date being Jan. 15, 2027.

Lithium Argentina will use the proceeds to fund its operations and debt repayment.

Under the terms of agreement, GFL International may exercise its conversion rights at any time after they become effective, to convert all or part of the then-outstanding and unpaid principal into common shares of Lithium Argentina.