LITH:CC - Lithium Chile Announces Due Diligence On Arizaro Sale Nears Completion, Moves To Definitive Agreement Stage
(TheNewswire)
CALGARY, ALBERTA, February 20,2025 – TheNewswire - Lithium Chile Inc .(“ Lithium Chile ” or the “ Company ”) in its commitment to keep theirshareholders apprised on the progress of the Arizaro transaction, are pleased to provide an update on the proposed sale, announced on December19, 2024 , of Lithium Chile's 80%interest in the Salar de Arizaro project (the “ Project ”) for USD$180 million (approximately CAD $250 million).
Due Diligence Completed to the PointWhere Definitive Agreement Now Being Drafted
The Company reports that the due diligence isessentially completed by the buyer and their confidence in thesuccessful completion of the acquisition has prompted them to begindrafting the final definitive agreement on the sale of the ArizaroProject. A comprehensive review of financial, legal, operational, andtechnical due diligence has been underway since early December 2024.With this milestone achieved, both parties are now advancing into thedefinitive agreement stage, marking a critical step toward finalizingthe transaction.
Next Steps
Legal representatives from both parties are activelycollaborating to finalize the contractual framework for the definitiveagreement which will outline the final transaction terms, closingconditions, and the expected Closing Date. This legally bindingcontract will govern the sale and ensure a smooth transition. TheCompany will provide further updates as the process progresses.
Steve Cochrane, President and CEO of Lithium Chile,commented, " Thecompletion of due diligence and progress towards a definitiveagreement is a major milestone in advancing this transaction. This hasbeen an intensive in-depth review of the Company’s Arizaro Project;we are now fully focused on finalizing the definitive agreement andensuring that this deal maximizes value for our shareholders. Our teamis working diligently alongside our advisors and stakeholders to bringthis transaction to a successful close.
Lithium Chile remains committed to a seamlesstransition through this final phase and will continue working closelywith regulatory bodies, legal teams, and the buyer to meet all closingrequirements. While the Company is confident inits advancement towards a successful completion of the transaction,there are still a number of conditions to be met.
ABOUT LITHIUM CHILE
Lithium Chile Inc. is an exploration company with aportfolio of 11 properties spanning 107,936 hectares in Chile and29,245 hectares on the Salar de Arizaro in Argentina. The Company hassuccessfully advanced its Arizaro project with the completion of an NI43-101 compliant Resource Report followed by a Preliminary EconomicAssessment and then a Prefeasibility Study, all of which areaccessible on SedarPlus.ca under Lithium Chile’s profile.
Lithium Chile’s common shares are listed on the TSX-Vunder the symbol “LITH” and on the OTCQB Under the symbol“LTMCF”.
To find out more about Lithium Chile, please contactSteven Cochrane, President and CEO via email: steve@lithiumchile.ca or Michelle DeCecco, COO via email: michelle@lithiumchile.ca or phone: 587-393-1990.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONSERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXVENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACYOF THIS RELEASE.
FORWARD LOOKING STATEMENTS AND RISKFACTORS:
This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-lookingstatements"). Generally, forward-looking statements can beidentified using forward-looking terminology such as"expected", "anticipated", "aims to","plans to" or "intends to" or variations of suchwords and phrases or statements that certain actions, events orresults "will" occur. Such forward-looking statements arebased on various assumptions and factors that may prove to beincorrect, including, but not limited to, factors and assumptions withrespect to the general stability of the economic and politicalenvironment in which the Company operates and the timely receipt ofrequired regulatory approvals.
Closing of the proposed sale remains subject tosignificant risks including obtaining necessary regulatory bodyapprovals including that of the TSX Venture Exchange. Closing alsoremains subject to the completion of Definitive Agreements in formsatisfactory to the parties to the transaction and remains subject tofinal completion of due diligence by the Buyer.
Readers are cautioned that the foregoing risk factorsare not exhaustive. Undue reliance should not be placed on theforward-looking statements because Lithium Chile can give no assurancethat they will prove to be correct or that any of the eventsanticipated by forward-looking statements will transpire or occur, orif any of them do, what benefits Lithium Chile will derive therefrom.Similarly, the risk factors listed above are not exhaustive and otherrisk factors that have not been anticipated may become apparent asLithium Chile proceeds to Closing. Lithium Chile does not undertaketo update any forward-looking statements herein, except as required byapplicable securities laws. All forward-looking statements containedin this news release are expressly qualified by this cautionarystatement.
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