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Lithium Chile Inc ( (TSE:LITH) ) has provided an announcement.
Lithium Chile Inc. has signed a definitive share purchase agreement with China Union Holdings Ltd. to sell 100% of its Argentine subsidiary, Argentum Lithium S.A., which indirectly holds interests in the Arizaro lithium project in Salta Province, for US$175 million in cash, subject to customary closing adjustments. The deal, which includes an initial guarantee deposit of US$5 million, an 18‑month escrow holdback on 7.5% of the price, various pre-closing steps to consolidate ownership in the Arizaro project, regulatory and shareholder approvals, and reciprocal US$17.5 million termination fees, is being positioned by management as a transformative transaction that will crystallize value from Arizaro, enable a capital return to shareholders, and refocus the company on advancing its Chilean lithium portfolio, subject to completion of all conditions and TSX Venture Exchange acceptance.
The most recent analyst rating on (TSE:LITH) stock is a Buy with a C$1.28 price target. To see the full list of analyst forecasts on Lithium Chile Inc stock, see the TSE:LITH Stock Forecast page.
Spark’s Take on TSE:LITH Stock
According to Spark, TipRanks’ AI Analyst, TSE:LITH is a Neutral.
Lithium Chile Inc. faces major financial challenges, with no revenue and negative cash flows impacting its score significantly. While technical analysis shows some positive signs, these are insufficient to offset the financial weaknesses. The valuation is moderate but lacks a dividend yield, further limiting attractiveness.
To see Spark’s full report on TSE:LITH stock, click here.
More about Lithium Chile Inc
Lithium Chile Inc. is a Calgary-based exploration company focused on lithium assets, primarily in South America. Its portfolio has included the Arizaro salar lithium project in Salta Province, Argentina, as well as a range of highly prospective lithium properties in Chile, positioning the company in the battery metals and energy transition sector.
Average Trading Volume: 302,214
Technical Sentiment Signal: Buy
Current Market Cap: C$129.5M
Find detailed analytics on LITH stock on TipRanks’ Stock Analysis page.