Strategic Sale of Lithium South Project and Future Plans
Strategic Sale of Lithium South Project
Lithium South Development Corporation (TSXV: LIS) is currently making significant strides with the sale of its Hombre Muerto North Lithium Project package. This pivotal update highlights the company’s journey as it transitions its focus and aligns with strategic partnerships that enhance its market position.
Overview of the Transaction
The sale agreement involves POSCO Argentina SAU, a reputable subsidiary of POSCO Holdings Inc. Management is navigating through crucial milestones and timelines associated with this transaction. This includes a 60-day due diligence period, which is followed by an additional 60 days to finalize the definitive agreement needed to consummate the deal.
Due Diligence and Shareholder Engagement
As announced, the anticipated completion of the due diligence process will pave the way for an Annual General and Special meeting. At this meeting, shareholders will vote on the proposed sale and the initiation of an issuer bid. This issuer bid aims to purchase all issued and outstanding securities of the company based on the net value acquired from the sale once it closes. Future updates will be provided as the transaction progresses, ensuring transparency with shareholders.
Role of Financial Advisors
Lithium South is diligently working alongside Canaccord Genuity Corp. as its financial advisor to ensure a comprehensive and timely completion of the due diligence. The collaboration with POSCO is crucial in navigating these processes efficiently, allowing for smooth transitions as the sale progresses.
About Lithium South Development Corporation
Lithium South owns 100% of the HMN Li Project, strategically located within the lithium triangle in South America. With historical lithium production in the vicinity, the project is poised to attract attention with its significant resource estimates. Recent reports highlight a compliant resource of 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE) at an impressive lithium concentration.
Growing Interest in Lithium Production
The region's production capabilities, exemplified by historic operations and significant investments, set a promising context for Lithium South's initiatives. In addition, the adjacent billion-dollar lithium development by POSCO emphasizes the potential surrounding the HMN Li Project, enhancing its attractiveness to investors.
Future Development Prospects
As part of moving forward, the company is targeting a feasibility study that will assess the potential development of a 15,600 tonne per year lithium carbonate facility. This planned advancement illustrates Lithium South's commitment to becoming a key player in the lithium market, impacting both the domestic and global stages effectively.
Investment Contact Information
For additional information regarding investors and shareholders, contact Adrian F. C. Hobkirk, President and Chief Executive Officer, at 855-415-8100. Visit the official website for further insights at www.lithiumsouth.com.
Frequently Asked Questions
What is the current status of the Hombre Muerto North Project sale?
Lithium South is in the process of completing due diligence with POSCO, with significant updates expected following the upcoming meetings.
Who is handling financial advisement for the transaction?
Canaccord Genuity Corp. is serving as the financial advisor, helping navigate the complexities of the transaction with POSCO.
What is the anticipated timeline for the transaction completion?
Subject to a maximum 60-day due diligence period and a subsequent agreement period, the transaction could reach completion by the end of 2025.
How does this sale impact Lithium South's future?
This sale is pivotal as it allows Lithium South to refocus its resources and potentially engage in further developmental projects, including share repurchase opportunities.
What resources are currently estimated at the HMN Li Project?
The HMN Li Project boasts an NI 43-101 compliant estimate of approximately 1,583,200 tonnes of Lithium Carbonate Equivalent.
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