Lithium Chile (TSX-V: LITH) Nears USD 175M Arizaro Deal, Unlocking Strategic Growth

3 min read | January 15, 2026 12:25 AM EST | By Sonal Goyal

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Lithium Chile (TSX-V: LITH) Nears USD 175M Arizaro Deal, Unlocking Strategic Growth — Image source: © 2026 Krish Capital Pty. Ltd.

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Highlights

Lithium Chile is making steady progress toward the USD 175 million sale of its Arizaro lithium project in Argentina to China Union Holdings Ltd. (CUH).

The company has executed a definitive agreement to sell its Argentinian subsidiary, Argentum Lithium S.A., owner of the Arizaro project.

The USD 5 million buyer deposit has been finalized and placed in escrow.

Lithium Chile is evaluating a potential Substantial Issuer Bid (SIB) post-closing to reduce outstanding shares while maintaining sufficient cash for its Chilean lithium portfolio.

Lithium Chile Inc. (TSX-V: LITH) (OTCQB: LTMCF) is steadily advancing the USD 175 million sale of its Arizaro lithium project in Argentina, marking a major milestone in the company’s growth strategy. With a definitive agreement in place for the sale of its Argentine subsidiary, Argentum Lithium S.A., Lithium Chile is on track to complete a transaction that strengthens its financial position while setting the stage for the continued development of its extensive Chilean lithium portfolio.

The company plans to hold an annual general and special meeting on May 15, 2026, to formally seek shareholder approval for the transaction.

Escrow Agreement Secures Buyer Deposit

Lithium Chile confirmed that the escrow agreement for the USD 5 million buyer deposit from CUH was successfully finalized within the required 20-day period. This deposit will be held in escrow for Lithium Chile's benefit, securing the purchaser's payment obligations under the agreement.

Exploring Substantial Issuer Bid

In parallel, the company is assessing the potential implementation of a Substantial Issuer Bid (SIB) following the transaction’s completion. If executed, the SIB would allow shareholders to tender common shares back to the company at a specified price, resulting in a meaningful reduction of outstanding shares.

Management noted that any SIB would be structured to preserve sufficient cash to continue advancing the Chilean lithium portfolio. Final terms, including pricing, would be determined post-closing and disclosed in a separate bid circular, subject to regulatory approval.

Regulatory Progress and Operational Continuity

While Lithium Chile works through remaining closing conditions, CUH, listed on the Shenzhen Stock Exchange, continues to progress through its regulatory approval process in China. Both parties remain focused on completing the transaction as efficiently as possible.

Meanwhile, Lithium Chile’s technical team continues to manage the Arizaro asset, maintaining operational, environmental, and community commitments throughout the transition period.

With a property portfolio spanning more than 106,000 hectares in Chile and 29,245 hectares in Argentina, and the Arizaro project advancing through NI 43-101 resource reporting and economic studies, Lithium Chile is well positioned for its next growth phase following the completion of this transformative transaction.

LITH shares traded at CAD 0.58 per share on 15 January 2026.

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