CALGARY, ALBERTA — December 22, 2025 — Leads & Copy — Lithium Chile Inc. (TSX Venture Exchange: LITH) (OTC-QB: LTMCF) has announced it has entered a definitive share purchase agreement with China Union Holdings Ltd. for the sale of its Argentine subsidiary, Argentum Lithium S.A. The purchase price is USD $175,000,000, subject to customary closing adjustments and payable in cash at closing.
According to the definitive agreement, 92.5% of the payment will be released at closing, with 7.5% held in escrow for eighteen months to secure post-closing indemnity obligations.
China Union Holdings Ltd. will acquire 100% of Lithium Chile’s shares in Argentum, a corporation existing under the laws of Argentina, which indirectly holds interests in the Arizaro salar lithium project in Salta Province, Argentina.
The purchaser has agreed to fund a USD $5,000,000 guarantee deposit into a dedicated escrow account, intended to secure the purchaser’s payment obligations. This deposit will be released in accordance with the definitive agreement and the deposit escrow agreement.
Completion of the transaction is subject to several conditions:
- Argentum must acquire an additional 17.8% equity interest in ARLI S.A. from LitiAr S.A., increasing Argentum’s ownership of ARLI to 80%. ARLI is an Argentine corporation established to hold all property rights and concessions comprising the Arizaro Project.
- SALTA LITIO S.A., a subsidiary of Lithium Chile, must carve out or divest the Block 4 property and certain related water rights.
- All required governmental and regulatory approvals must be received.
- The TSX Venture Exchange must accept the transaction, and any required shareholder approvals must be obtained.
- Other conditions contained in the definitive agreement must be met.
The definitive agreement provides for a USD $17,500,000 termination fee payable by either Lithium Chile or the purchaser under certain specified circumstances.
Closing is stipulated to occur on the fifth business day following satisfaction or waiver of all conditions precedent, or another mutually agreed-upon date. The agreement can be terminated by mutual consent if closing has not occurred within 180 days of the agreement date, unless extended in writing, and in other circumstances as detailed in the agreement.
Lithium Chile expects to pay Ventum Financial a cash financial advisory fee equal to 1.0% of the total consideration payable under the transaction at closing, subject to TSXV acceptance. Additional details regarding the terms of the transaction are available in the definitive agreement, which will be filed under the company’s profile on SEDAR+ at www.sedarplus.ca.
Steve Cochrane, President & CEO of Lithium Chile, said executing the definitive agreement represents a transformative milestone for Lithium Chile. Cochrane said the transaction will crystallize significant value from Arizaro, allowing the company to return capital to shareholders while continuing to focus on advancing its Chilean portfolio.
Lithium Chile Inc. is an exploration company with a portfolio of 11 properties spanning 106,136 hectares in Chile and 29,245 hectares on the Salar de Arizaro in Argentina. The company’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTCQB under the symbol “LTMCF”.
To find out more about Lithium Chile, please contact Steven Cochrane, President and CEO via email: steve@lithiumchile.ca. Or Michelle DeCecco, COO via email: michelle@lithiumchile.ca or phone: 403-393-1990.
Steven Cochrane, President and CEO, steve@lithiumchile.ca
Michelle DeCecco, COO, michelle@lithiumchile.ca, 403-393-1990
Source: Lithium Chile Inc.
