By Adriano Marchese

Lithium Americas Corp. said Wednesday that it has agreed to acquire Millennial Lithium Corp. for a total of consideration of around US$400 million in cash and stock.

The company said that it has agreed to buy up all the outstanding shares of Millennial by way of a plan of arrangement for 4.70 Canadian dollars a share (US$3.74) payable in Lithium Americas shares and C$0.001 in cash.

The company said that based on Lithium Americas' closing price on Tuesday, it would result in Millennial shareholders owning around 9.1% of Lithium Americas stock.

Millennial is focused on the development of its flagship lithium brine project, Pastos Grandes in Argentina.

"This transaction is a rare opportunity to add a complementary lithium brine project and leverage our expertise developing Caucharí-Olaroz as the largest new lithium carbonate operation to come online in over 20 years," President and Chief Executive Jonathan Evans said.

Write to Adriano Marchese at adriano.marchese@wsj.com