Lithium South Announces Pay Out of Common Shares and Closing of Plan of Arrangement
Lithium South to pay out C$0.505 per share, delist as Posco’s US$65M buyout of Argentine lithium project closes
The most recent release (2026-05-11) confirms the effective date for the cash payout of CAD$0.505 per common share to shareholders is set for May 15, 2026, following receipt of funds from Posco Argentina S.A.U. The Plan of Arrangement, which was approved at the February 2026 shareholder meeting, is being finalized, pending final TSX Venture Exchange approval. Lithium South intends to delist its shares from the TSX Venture Exchange and OTCQB market and cease being a reporting issuer after the payout. The news is a procedural closing step in a long-announced and shareholder‑approved transaction.
The sale of the Hombre Muerto North lithium project to Posco for US$65 million was first announced via a letter of intent in July 2025, signed as a Share Purchase Agreement in December 2025, and approved by shareholders in February 2026. The closing of the asset sale occurred on April 7, 2026. The May 11 payout and delisting announcement is entirely expected and provides no new information to the market. It is the execution of a previously disclosed and fully anticipated plan. Therefore, the most recent news has no incremental positive or negative surprise; it is routine in nature. The earlier sale itself was a material game‑changer, but now the process is concluding without any deviation from the announced terms. Shareholders receive the exact cash consideration previously disclosed, and the delisting was communicated months ago. All conditions appear to have been met, and no new risks or upsides are introduced.
Lithium South Development Corporation was a lithium brine explorer in Argentina’s Lithium Triangle. Its flagship asset was the Hombre Muerto North (HMN) lithium project, located in Salta and Catamarca provinces, immediately adjacent to Posco’s Sal de Oro lithium project. The project held an NI 43‑101 compliant resource of 1,583,200 tonnes of lithium carbonate equivalent (LCE), with 1,463,000 t in the measured category and 120,000 t indicated, based on an average grade of 736 mg/L Li. A preliminary economic assessment (April 2024) suggested potential for a 15,600 tpa lithium carbonate plant. The company had been advancing environmental permitting and feasibility‑study work before agreeing to the buyout by Posco.