Lithium South, Posco working on HMN due diligence

Executive Summary

• Lithium South Development Corp. provides an update on the pending sale of its Hombre Muerto North (HMN) lithium project to Posco Argentina SAU, outlining a maximum timeline that could see the definitive agreement signed by 19 Nov 2025.
• Upon closing, shareholders will be asked to approve both the sale and an issuer‑initiated bid to repurchase up to all outstanding shares using the net proceeds from the transaction.
• The company continues to work with financial adviser Canaccord Genuity Corp. and Posco to complete due diligence within the stipulated 60‑day periods.

Key Details

• Transaction Structure: Sale of 100 % of HMN lithium project to Posco Argentina SAU (full subsidiary of Posco Holdings Inc.).
• Due Diligence Timeline: 60 days for due diligence starting from the July 30, 2025 press release.
• Definitive Agreement Deadline: Additional 60 days after due diligence; latest possible signing date is 19 Nov 2025.
• Shareholder Actions: Post‑closing, an annual general and special meeting will be called to (i) obtain shareholder approval for the sale and (ii) approve an issuer bid to repurchase up to all issued and outstanding securities using the net cash received from the transaction.
• Financial Adviser: Canaccord Genuity Corp. is acting as Lithium South’s financial adviser on the transaction.
• Project Overview: HMN comprises a NI 43‑101 compliant resource of 1,583,200 t LCE (736 mg/L Li average) – 1,463,000 t measured and 120,000 t indicated; preliminary economic assessment (30 Apr 2024) supports a 15,600 t/yr lithium carbonate plant.
• Future Updates: Lithium South will issue further press releases as the transaction progresses and once the net value of proceeds is determined.

Notable Quotes

(No direct quotes were provided in the release.)