Lithium South Development Sells HMN Li Project for Up to $62 Million

Major Lithium Project Sale by Lithium South Development

Lithium South Development Corporation has made headlines with its recent announcement regarding the sale of the HMN Li Project, located in Salta, Argentina. On July 22, 2025, the company signed a Letter of Intent (LOI) to sell the project for an impressive potential total of up to $62 million. The buyer, POSCO Argentina S.A.U., is fully owned by POSCO Holdings, a major player in the steel and battery materials industry headquartered in South Korea.

The HMN Li Project includes the Hombre Muerto North Lithium Project along with Sophia 1, 2, and 3 concessions, and a purchase option on Hydra X and Hydra XI concessions. This acquisition marks a significant strategic move for POSCO, which aims to strengthen its foothold in the lithium market, critical for the production of electric vehicle batteries and other technologies.

Financial Dynamics and Due Diligence

The offer was made on an arms-length basis, and no finder's fee will be involved in the transaction. As a part of the process, this LOI is non-binding and is set to undergo stringent conditions, including a 60-day due diligence review followed by another 60 days designated for negotiating a definitive agreement. During this period, Lithium South has committed to refrain from soliciting offers from any other parties.

For the deal to proceed, it will require several customary approvals, including regulatory approvals and consent from shareholders of Lithium South. The board of directors remains cautious about the LOI, noting that there is no guarantee that all conditions will be met or that the transaction will ultimately be successful. Details on the LOI will only be shared when deemed necessary.

Insights Into Lithium South's Operations

Lithium South Development Corporation owns the HMN Li Project, which is strategically located in Argentina's lithium triangle, an area renowned for its rich lithium deposits. This project has great potential, with existing infrastructure and a history of lithium production. The Salar del Hombre Muerto holds a notable history with over 25 years of lithium extraction. Most recently, a preliminary economic assessment highlighted the opportunity to produce lithium carbonate at a scale of approximately 15,600 tonnes per year.

As of now, the project is in the developmental phase, and the company is advancing towards a feasibility study to ensure its economic viability. They are optimistic about the potential outcomes of this sale, as the growth in demand for lithium-driven technologies continues to rise with the electrification of automobiles and appliances.

The Bigger Picture

This strategic move comes at a time when the global shift towards green technology and sustainable energy solutions is paramount. The lithium market is rapidly evolving, with significant implications for both investor sentiment and technological advancements in energy storage and electric vehicles.

Lithium South's transaction with POSCO Argentina underscores the crucial nature of lithium resources in the contemporary economy. As the world leans towards cleaner energy, companies like POSCO and Lithium South are positioned at the forefront of this revolution — driving innovation while addressing the pressing need for sustainable resources.

As the deal progresses, stakeholders will be keenly watching to see how it unfolds and what it means for the future of lithium production in Argentina and beyond.

Conclusion

Lithium South Development remains committed to navigating the complexities of this sale effectively while keeping shareholders informed. Further developments regarding the LOI and project advancements are anticipated as they chart the pathway forward in this dynamic market.