Lithium South partner Posco approves HMN transaction

Executive Summary

• Posco Argentina SAU has given final approval for Lithium South Development Corp.’s acquisition of the Hombre Muerto North lithium project via purchase of NRG Metals Argentina SA.
• The agreed acquisition price is $65 million (USD), adjusted for taxes, closing costs and property payments.
• An annual general and special shareholders’ meeting is scheduled for Jan 9 2026 to seek approval for the sale, share repurchase and related matters; the transaction remains subject to regulatory and TSX‑V approvals.

Key Details

• Acquisition Target: Hombre Muerto North (HMN Li) lithium project owned by NRG Metals Argentina SA (Lithium South’s wholly‑owned subsidiary).
• Buyer: Lithium South Development Corp., with Posco Argentina SAU as the financing partner.
• Approval Status: Full approval from Posco Argentina; funds allocated for transaction completion.
• Acquisition Price: $65 million USD, adjusted to reflect tax burdens, closing costs and property payments.
• Transaction Structure: Purchase of NRG Metals Argentina SA (100% ownership) by Lithium South; share purchase agreement (SPA) being finalized.
• Regulatory Conditions: Subject to regulatory approval and TSX Venture Exchange clearance.
• Shareholder Action Required: Annual General & Special Meeting scheduled for Jan 9 2026 to obtain shareholder consent for:
• Sale of NRG Metals (owner of HMN Li).
• Repurchase of all issued and outstanding securities of Lithium South.
• Other business matters related to the transaction.
• Timeline References: SPA announcements previously made on July 30 2025, Aug 7 2025, and Sept 22 2025; formal signing anticipated imminently.

Notable Quotes

(No direct quotes provided in the release.)