#Canada #Vancouver #Stellantis #Argentina Lithium #Paso de Sico

Argentina Lithium Amends Paso de Sico Option Agreement

Argentina Lithium & Energy Corp. (TSXV: LIT) has made significant updates to its previously established Paso de Sico Option Agreement as of July 23, 2025. This amendment is vital for aligning the payment schedule and share issuance under the option agreement that will allow the company to move forward with its strategic objectives in the lithium market.

Overview of the Paso de Sico Option Agreement

Originally, Argentina Litio Y Energia S.A., a subsidiary of Argentina Lithium, entered into the Paso de Sico Option Agreement on September 20, 2022, with nine individual optionors. This agreement positioned Argentina Lithium to potentially acquire a 100% interest in four mine concessions at the Salar de Rincon, covering an area of 791.3 hectares.

To exercise this option, Argentina Lithium committed to making cash payments totaling $1,500,000 over a span of three years. The recent amendment has tweaked this payment framework, notably extending the due date of the fifth and final cash payment of $418,000 from March 31, 2025, to September 30, 2025. This extension allows the company to better manage its cash flows while fulfilling its obligations to the optionors.

Key Changes in the Amendment

With the new deal, in addition to the payment extension, Argentina Lithium has agreed to pay an extra extension fee of $41,800 to the optionors, acknowledging the adjustment to the payment timeline. Instead of cash payments, this fee will be fulfilled through the issuance of 995,954 shares at a price of $0.06 each. This approach not only appraises the value of shares but also emphasizes Argentina Lithium's commitment to leveraging equity to maintain financial flexibility.

The Amendment must still receive approval from the TSX Venture Exchange, a procedure that is anticipated to garner favorable outcomes due to the company's strategic positioning and collaborative approach with optionors.

Argentina Lithium’s Strategic Position

Argentina Lithium is in an advantageous position, especially with the growing global demand for lithium, primarily driven by the electric vehicle (EV) sector. The strategic investment by Stellantis N.V.'s subsidiary PSG, strengthens Argentina Lithium's potential in the global lithium market. The company is pursuing a diversified portfolio aimed at advancing toward production—thereby establishing a significant footprint in the Lithium Triangle of Argentina, a region recognized for its rich lithium deposits.

Argentina Lithium boasts over 70,000 hectares across its key projects, making it one of the most promising players in lithium resource management. The company is led by a management team with extensive expertise in Argentina's resource sector, giving them a solid foundation for ensuring successful exploration and development initiatives.

Future Outlook

As the company navigates this transformative period marked by amendments to existing agreements, the future looks promising. While challenges exist—such as risks associated with regulatory approvals and fluctuating market conditions—the proactive measures taken through the amended agreement indicate a robust strategy for sustainable growth.

In conclusion, Argentina Lithium's amendment to the Paso de Sico Option Agreement is not just a financial maneuver but reflects a larger vision of resilience and ambition within the environmentally vital lithium sector. Stakeholders and interested investors will be keenly observing the forthcoming developments that will unfold as this strategy is executed over the coming months.

For ongoing updates and detailed information, Argentina Lithium continues to maintain open lines of communication through its corporate communications office.

Contact Information

For more information,
Contact: Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: [email protected]
www.argentinalithium.com

Disclaimer: This article contains forward-looking statements that are subject to various risks and uncertainties. Actual results may differ.