Thursday, September 4, 2025

Lithium Chile Enters Binding LOI To Sell Arizaro For C$250 Million, Proceeds To Be Issued To Shareholders Via Special Dividend

FULL DISCLOSURE: The Deep Dive is long the equity of Lithium Chile.

Lithium Chile (CSE: LITH) has received its first official offer for its Arizaro lithium project in Chile. The company announced last night that it has executed a binding letter of intent for the sale of its 80% interest in the project.

The binding LOI outlines an offer price of US$180 million for its 80% interest in the Arizaro project, which currently translates to a figure of approximately C$250.0 million. The transaction, if it proceeds, would see the sale of the firms wholly owned Argentinian subsidiary, Geo Inversiones Mineras S.A.

Lithium Chile also outlined that the proposed purchase does not include the Block IV project, which is also based in Argentina. The project is held in a separate subsidiary, and not subject to the purchase agreement.

The buyer of the project is said to be a large, Asian based company that was founded over two decades ago, with diversified interests in mining, renewable energy, and the tech sectors. Financial due diligence is said to have been completed on the buyer to confirm that they have the financial strength and capability to complete the proposed purchase.

READ: Lithium Chile Outlines Pre-Tax US$3.8 Billion NPV(8%) For Arizaro Project In Pre-Feasibility Study

Closing of this transaction will unlock the tremendous value of the Arizaro asset for the benefit of all Lithium Chile shareholders. We will be able to deliver a substantial cash dividend to our shareholders all the while retaining our other significant assets in Argentina and Chile.  I would like to extend my thanks to our stakeholders for their continued support while we proceeded with our strategic process,” commented Lithium Chile CEO Steve Cochrane.

Upon closing of the transaction, a majority of the net proceeds from the sale are expected to be provided to shareholders via a special dividend. With an estimated 214.2 million shares outstanding on a fully diluted basis, that dividend could amount to as much as $1.17 per share, before transaction fees are factored in based on rough estimates.

The current LOI outlines a 90-day exclusivity period, with the closing of the transaction subject to a number of conditions, including the satisfactory completion of a second round of due diligence by the buyer, regulatory approves, and the completion of a definitive agreement.

Lithium Chile last traded at $0.73 on the CSE.


FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Lithium Chile. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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