Lithium South Development Corporation Strengthens its Team
Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) is excited to announce that it has appointed Claudio C. Zalewski as the Director of Development & Construction for its Hombre Muerto North (HMN) Lithium Project. This strategic move aims to accelerate the project's development and feasibility phase.
Expertise in Lithium Projects
Claudio Zalewski brings over 40 years of extensive expertise in the field of civil engineering and project management, notably within the lithium industry. His impressive background includes leadership roles such as Project Director for the Pastos Grandes Lithium Project and Engineering Manager for the Centenario Lithium Project. This wealth of experience positions Lithium South for a successful advancement of its HMN Lithium Project.
Fast-tracking Development Plans
Under Mr. Zalewski's leadership, the company has prioritized four key workstreams that are essential for the project’s progression. The first is the development of the Definitive Feasibility Study (DFS) Tender Package, which is currently being prepared for bidding. The second workstream focuses on establishing design criteria that will set the foundation for all further plans.
The third is the creation of updated CAPEX (Capital Expenditures) and OPEX (Operational Expenditures) financial models, which are currently 70% complete. Lastly, a Project Execution Plan is undergoing internal revisions. These workstreams are set to pave the way for an efficient construction process once feasibility is finalized.
Development Schedule and Target Dates
Lithium South is intensively working to develop a comprehensive timeline that outlines every aspect of the HMN Lithium Project, from the feasibility study phase through to construction and eventual commissioning. The company targets to initiate the feasibility study tendering process before the end of the third quarter of the coming year and aims to deliver complete feasibility results by the first quarter of the following year.
Tax and Import Reforms
In a notable development, Lithium South is optimistic about recent legislative changes to tax and import regulations in Argentina. These reforms, established under the Régimen de Incentivo a las Grandes Inversiones (RIGI) law, are set to heavily favor projects above the US $200 million scale. Under this new regime, projects can benefit from a 30-year stability on taxes and customs, a flat corporate income tax rate of 25%, and various other financial advantages, potentially enhancing the economic viability of the HMN Project.
Expansion of Project Holdings
The company is also pleased to reveal the successful arrangement of a Purchase Option for the beneficial two claim blocks, Hydra X 1 and Hydra X 2, on the Hombre Muerto Salar, increasing its total holdings in the project area to over 10,000 hectares. This strategic acquisition reflects the company's commitment to widening its project scope and optimizing resource extraction outcomes.
Ongoing Discussions for Development Funding
Lithium South is actively engaged in discussions with several Original Equipment Manufacturers (O.E.M.), mining, and financial entities aimed at securing funding for the HMN Project's development. Although market conditions remain competitive, the interest surrounding the HMN project persists, signaling confidence among stakeholders regarding its future.
About Lithium South Development Corporation
Lithium South owns 100% of the HMN Lithium Project located in the Lithium Triangle region of Argentina. This region boasts a rich history of lithium production. The project is adjacent to Rio Tinto Lithium’s operations, which have been active for over 25 years, and the significant development by POSCO, also pursuing lithium extraction nearby.
The HMN project has already delineated a substantial lithium resource of 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE) at an average grade of 736 milligrams per liter lithium. A recent preliminary economic assessment indicates strong potential for establishing a robust lithium carbonate production facility. As the project moves forward, Lithium South is dedicated to taking the necessary steps for its full development.
For those interested in more information about the company and its projects, please feel free to contact the executive office.
Frequently Asked Questions
What is the role of Claudio C. Zalewski at Lithium South?
Claudio C. Zalewski has been appointed as the Director of Development & Construction for the HMN Lithium Project.
What are the key focus areas for the HMN Lithium Project?
The project focuses on preparing the DFS tender, establishing design criteria, developing financial models, and revising the project execution plan.
How does the new tax regime benefit Lithium South?
The new tax regulations provide a 30-year stability framework that significantly impacts project feasibility positively.
What recent developments have occurred regarding Lithium South's holdings?
Lithium South has successfully acquired the Purchase Option for two claim blocks, expanding its total holdings to over 10,000 hectares.
What is the expected timeline for the HMN Project's development?
Lithium South aims to launch the feasibility study tendering process by the end of Q3 and complete the feasibility study by late Q1 of the following year.
