This Lithium Microcap Just Entered Into a Major $175M Transaction

2025-12-22 11:08:00 ET

On a broader risk-on trading day, a significant transaction was announced in the lithium sector, driving shares of the acquired company higher.

Lithium Chile Inc. (TSX-Venture: LITH) (OTCQB: LTMCF) announced this morning that they have entered into a definitive agreement with China Union Holdings Ltd. to sell their Argentine subsidiary, Argentum Lithium S.A., which holds interests in the Arizaro salar lithium project in Salta Province, Argentina. The all-cash transaction is valued at US$175 million, with 92.5% payable at closing and the remaining 7.5% held in escrow for 18 months to cover post-closing obligations. In addition, the buyer will place a US$5 million guarantee deposit into escrow to secure its payment commitments under the agreement.

Completion of the sale remains subject to several customary conditions, including Argentum increasing its ownership stake in ARLI S.A. to 80%, the divestiture of certain non-core assets and water rights, and receipt of all required regulatory, exchange, and shareholder approvals. The agreement also includes reciprocal termination fees of US$17.5 million under specified circumstances. Closing is expected to occur shortly after all conditions are satisfied, with the parties retaining the right to terminate the agreement if the transaction is not completed within 180 days, unless an extension is mutually agreed.

Steve Cochrane, President & CEO of Lithium Chile, commented, “Executing the Definitive Agreement represents a transformative milestone for Lithium Chile. This transaction will crystallize significant value from Arizaro, allowing us to return capital to shareholders while continuing to focus on advancing our highly prospective Chilean portfolio.”

Shares of LITH are currently up 3.45% at $0.60, while shares of its U.S. symbol (LTMCF) pop 8.44% at $0.451 in late-morning trading.

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