VANCOUVER, BC (By Lithium South, 7.Aug.2025, Words: 404) — Lithium South Development Corporation is providing an update to it’s news release of 30 Jul. 2025 regarding the sale of the Hombre Muerto North Lithium Project property package to POSCO Argentina SAU, which is the 100-per-cent-owned Argentine subsidiary of POSCO Holdings Inc.
Management is providing an update regarding the milestones to be achieved and the timing of the proposed transaction. As per the 30 Jul. 2025 press release, the company and POSCO are in the process of completing a 60-day due diligence period followed by a 60-day period to complete a definitive agreement on the purchase. If it takes the maximum amount of time, this process will be completed by 19 Nov. 2025. Once the definitive agreement has been signed, as this is the sole asset that the company has recorded on its books, the company will then call an annual general and special meeting to have the shareholders vote on matters that will include the proposed sale as well as approval to immediately undertake an issuer bid to purchase up to all of the issued and outstanding securities of the company for the net value received after closing of the transaction. This value will be determined in a future press release.
The company is working with Canaccord Genuity Corp. as financial advisor, and with POSCO to complete the due diligence within the required time frame. The company will provide future updates as the transaction moves forward.
About Lithium South Development Corp.
Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, in the heart of the lithium triangle. The Salar del Hombre Muerto has a history of lithium production, with Rio Tinto Lithium (formerly Arcadium Lithium and recently purchased by Rio Tinto Corporation for $6.7bn in Mar. 2025) in operation to the south of the HMN Li Project for over twenty-five years.
The HMN Li Project is adjacent to the east with a US billion-dollar lithium development by POSCO Argentina S.A.U., now in lithium production. Exploration work to date has delineated a NI 43-101 compliant 1,583,200 tonne Lithium Carbonate Equivalent (“LCE”) Resource at an average grade of 736 milligrams per liter lithium (mg/L Li ) , with 1,463,000 tonnes in the measured category and 120,000 tonnes in the indicated category, at a cutoff grade of 500 mg/l Li on the Alba Sabrina, Natalia Maria, and Tramo claim blocks, 3 of 5 non-contiguous blocks that make up the HMN Li Project.
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