Lithium Chile Executes the Formal Agreement for the Sale of its Argentine, Arizaro Project

Core Viewpoint - Lithium Chile Inc. has entered into a definitive share purchase agreement with China Union Holdings Ltd. for the sale of its Argentine subsidiary, Argentum Lithium S.A., marking a significant milestone for the company and allowing for the return of capital to shareholders while focusing on its Chilean portfolio [1][2]. Transaction Highlights - The transaction involves the sale of 100% of the shares in Argentum, which holds interests in the Arizaro salar lithium project in Salta Province, Argentina [3]. - The purchase price is set at USD $175,000,000, with 92.5% payable at closing and 7.5% held in escrow for 18 months to secure post-closing indemnity obligations [3]. - A guarantee deposit of USD $5,000,000 will be funded by the purchaser into an escrow account to secure payment obligations [3]. Closing Conditions - The transaction is subject to several conditions, including the acquisition of an additional 17.8% equity interest in ARLI S.A. by Argentum, increasing its ownership to 80% [3]. - Other conditions include the divestiture of the Block 4 property by SALTA LITIO S.A., receipt of governmental and regulatory approvals, acceptance by the TSX Venture Exchange, and any required shareholder approvals [3]. Termination Fees and Closing Timeline - The definitive agreement includes a termination fee of USD $17,500,000 payable by either party under specified circumstances [3]. - Closing is expected to occur on the fifth business day following the satisfaction or waiver of all conditions, with a maximum deadline of 180 days from the agreement date unless extended [3]. Next Steps - Both parties will work diligently to meet the closing conditions, and Lithium Chile will provide further disclosures as necessary [5]. Company Overview - Lithium Chile Inc. is an exploration company with a portfolio of 11 properties covering 106,136 hectares in Chile and 29,245 hectares in Argentina, including the Arizaro project [6]. - The company has advanced the Arizaro project with a completed NI 43-101 compliant Resource Report, Preliminary Economic Assessment, and Prefeasibility Study [6].