Lithium South signs LoI for sale of Argentina assets

Lithium South Development Corporation has signed a letter of non -binding intention (law) with POSCO Argentina to sell its HOMBRE MURETO NORTHIUM (HMN Li) project and concessions associated with Salta, Argentina.

POSCO offered $ 62 million (WON86.33 m) in cash for lithium south.

The HMN Li project, as well as the Sophia 1, 2 and 3 concessions and the Hydra X and Hydra XI concessions, are collectively called the project.

POSCO Argentina is the Argentine subsidiary of Posco Holdings and the only owner and operator of the SAL de Oro Lithium neighboring project. The offer is free of the costs of any researcher.

The agreement depends on regulatory and government approvals, as well as the approval of Lithium South shareholders at a next meeting.

There is no certainty that the conditions described in the law will be met or that the proposed transaction will be finalized. Lithium South said he would not make other comments on the law as long as it is not deemed necessary or appropriate.

Canaccord Genuity is the Lithium South financial advisor for this potential transaction.

Last week, Lithium South appointed Claudio C. Zalewski as director of development and construction of the project.

The company seeks to launch the feasibility study for the project before the end of the third quarter of 2025 (TC 2025) and to offer all the feasibility at the end of the first quarter of 2026.

The company has completed the drilling on 75% of the project area, which includes the alba Sabrina, Natalia Maria and Tramo complaint blocks.

Exploration has led to the identification of an equivalent carbonate lithium resource of 1.58 million tonnes, with 90% in the measured category, indicating the highest level of resource trust, said the company.

“Lithium South Signs Law for the sale of Argentinian assets” was originally created and published by Mining Technology, a brand belonging to Globaldata.

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