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M&A / Property

Lithium Chile Executes the Formal Agreement for the Sale of its Argentine, Arizaro Project

Lithium Chile Cashes Out of Argentina for $175M USD to Fund Chilean Pivot

By The Northwire Desk — AI Analysis Dec 22, 2025 · 08:07 LITH · 0.58 Lithium Chile Inc.
Executive Summary

On December 22, 2025, Lithium Chile announced the execution of a definitive share purchase agreement to sell its 100% interest in Argentum Lithium S.A., which holds the Arizaro lithium project in Salta, Argentina. The total consideration is USD $175 million in cash. A $5 million USD deposit has been secured, and $13.1 million USD will be held in escrow for 18 months post-closing for indemnity purposes. The deal is subject to several conditions, including the acquisition of a minority 17.8% interest by the subsidiary from a third party and the carve-out of specific water rights. The long-stop date for closing is 180 days from the agreement date.

Material Impact

This transaction is a transformative liquidity event. At current exchange rates, USD $175 million represents approximately $235 million CAD—nearly double the company's current market capitalization. - Financial Strength: The company was operating on a "shoestring" budget through mid-2025, with cash falling to $128,881 by September 30, 2025, before a necessary $7.97 million private placement in October. This sale eliminates all near-to-medium term financing risk. - Valuation Arbitrage: The market is currently valuing the entire company (including its elite Chilean CEOL rights) at a significant discount to just the cash value of this single asset sale. - Strategic Shift: Management intends to return capital to shareholders, which could imply a substantial special dividend or aggressive share buyback, while pivoting focus to the Coipasa project in Chile, where they were recently awarded a rare Special Lithium Operation Contract (CEOL).

LITH · Price
Company Overview

Lithium Chile holds a massive portfolio of lithium properties in South America's "Lithium Triangle." - Arizaro (Selling): Located in Salta, Argentina. This has been the primary value driver, now being divested for $175M USD. - Coipasa (New Flagship): Located in Northern Chile. The company was recently awarded a CEOL, one of only three private-sector groups (including Eramet) to receive such rights under Chile’s new national strategy. Coipasa shows high-grade lithium (up to 1410 mg/l).

Read the original news release →

More from Lithium Chile Inc.

Oct 26, 2026 · 08:20

Lithium Chile secures a bridge loan to delay the Arizaro sale while navigating regulatory hurdles.

Financings Oct 21, 2026 · 13:37

Lithium Chile’s Arizaro project faces stress as sale slips emerge, highlighting refundable deposit obligations and insider loans.

M&A / Property Sep 29, 2026 · 09:05

Ottawa escalates Arizaro review, putting Lithium Chile's US$175m exit at risk.

M&A / Property Aug 19, 2026 · 08:00

Lithium Chile’s Arizaro sale stalls and cash plan delays as jurisdiction disputes with ICA prolong the review process.

M&A / Property Aug 17, 2026 · 08:10

Canada’s national-security review threatens Lithium Chile’s US$175 million Arizaro sale.

M&A / Property Jun 18, 2026 · 17:25

Lithium Chile delays China Union’s $175 million Arizaro exit pending ODI approvals.

M&A / Property