HMN Li Project Sale for up to US$62 Million

Core Viewpoint - Lithium South Development Corporation has entered into a Letter of Intent to purchase several lithium projects in Argentina for up to US$62 million, indicating a strategic move to enhance its lithium resource portfolio [1][3]. Group 1: Transaction Details - The Letter of Intent involves the acquisition of the 100% owned Hombre Muerto North Lithium Project and other concessions, with a total cash price of up to US$62 million [1]. - The offer is made by POSCO Argentina S.A.U., a subsidiary of POSCO Holdings, which is the sole owner and operator of the Sal de Oro lithium project [1][2]. - The LOI is non-binding and includes a 60-day due diligence period, followed by a 60-day negotiation period for a definitive agreement [3]. Group 2: Project Background - Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, which is part of the lithium triangle known for its lithium production [5]. - The HMN Li Project has a NI 43-101 compliant resource estimate of 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE) at an average grade of 736 mg/L Li [5]. - A Preliminary Economic Assessment indicates the potential to develop a lithium carbonate project with a capacity of 15,600 tonnes per year, and the company is advancing towards a Feasibility Study [5]. Group 3: Advisory and Regulatory Aspects - Canaccord Genuity Corp. is acting as the financial advisor for Lithium South in this transaction [4]. - Any transaction will require customary regulatory approvals and shareholder approval at a future meeting [3].