Lithium Chile Receives US $5 Million Deposit Toward Sale of Salar de Arizaro Project, Argentina
Cash is king as Arizaro sale moves from paperwork to payments, but secondary asset value remains unproven.
The most recent news (February 18, 2026) confirms that Lithium Chile has received a non-refundable US$5 million deposit from China Union Holdings Limited. This payment is a requirement under the definitive agreement signed in December 2025 for the sale of 100% of the shares in Argentum Lithium S.A., the entity holding the Salar de Arizaro project in Argentina. The total cash consideration for the deal is US$175 million. Management indicates that regulatory and technical work is progressing toward a target closing date of June 1, 2026.
This news is a critical de-risking event. While the definitive agreement was announced previously, the actual movement of "hard dollars" from a Chinese counterparty into escrow signifies a higher probability of transaction completion. - Financial Liquidity: As of September 30, 2025, the company had a dangerously low cash balance of $128,881. Even with the $7.97 million raise in October 2025, the company’s survival was effectively tethered to this divestiture. - Valuation Gap: The US$175 million (approx. $240M CAD) sale price is significantly higher than the current market cap of ~$126M CAD. This suggests either a massive lack of market confidence in the deal closing or a failure to price in the special dividend management has teased. - Strategic Shift: By selling 100% of its flagship Arizaro project, Lithium Chile is effectively liquidating its most advanced asset. The material impact is a transition from a development-stage company back to an early-stage exploration company focused on Chile.
Lithium Chile is an explorer with a large land package in the "Lithium Triangle." - Flagship Project (Current): Salar de Arizaro, Argentina. It has a completed PFS (July 2024) showing an after-tax NPV of US$2.8 billion, yet the company is selling it for a fraction of that (US$175 million). This discrepancy suggests high perceived risk in the US$1 billion CAPEX required to build the project. - Flagship Project (Future): Coipasa, Chile. The company was recently awarded a Special Lithium Operation Contract (CEOL) here, making it one of the few private players allowed to develop lithium in Chile under the new national strategy.