Lithium Chile Inc.
Company Data
| Introduction
| Projects in Hand
| Management
News Update
| Chinese
| Address ： |
#700, 903 – 8th Ave. SW Calgary, AB Canada T2P 0P7 |
| Tel No.： | 587-393-1990 |
| Web Site： | www.lithiumchile.ca |
| E-mail： | info@lithiumchile.ca |
| Contact Person： | Steve Cochrane |
| Position： | President & CEO |
| Traded Market： | TSX-V |
| Traded Symbol： | LITH |
| Outstanding Shares： | approx. 196 million |
| 52 Week High： | $ 1.13 |
| 52 Week Low： | $ 0.47 |
| Present Price： | Click Here |
- Lithium Chile is an exploration and lithium resource company
- Lithium Chile has one of the largest land portfolios in the junior mining sector with properties on 13 salars, totaling over 130,000 hectares.
- Lithium Chile has ownership in the largest high-grade lithium reserves in the world comprising of 111,978 hectares in Chile and 29,245 hectares in Argentina.
- The Phase Two Exploration & Development Program is currently underway in Arizaro, Argentina to expand the 3,323,000 tonne Lithium Carbonate Equivalent (LCE) Resource as reported in the NI 43-101.
- The Preliminary Economic Assessment (PEA) highlights a Pre-tax NPV of US$1.8 billion on the Arizaro Project, with a Pre-Tax IRR of 29.3%.
- The Company is in the middle of their Prefeasibility study with two production rigs and one diamond drill rig drilling on their Arizaro property. Prefeasibility Study should be completed by April.
- An Exploration Program in Chile that includes 4 drill holes on the expansive Molle Verde claims, began in July 2023.
- Lithium Chile also owns 4 properties, totaling 21,329 hectares, that are prospective for gold, silver and copper. Exploration efforts are continuing on Lithium Chile's Carmona gold/silver/copper property which lies in the heart of the Chilean mega porphyry gold/ silver/copper belt.
- The Company has a significant cash position with a proven and experienced team in Canada, Argentina and Chile.
- Lithium Chile was awarded “Best Lithium Company of the Year” at the 2022 International Mines and Money Event in London.
Argentina Operations – Arizaro Project:
- 29,245 hectares on the Salar de Arizaro located in the Salta Province of Northwest Argentina.
- 3,323,000 tonne Lithium Carbonate Equivalent (LCE) Resource from the Salar de Arizaro.
- Lithium Chile commenced its Phase Two Exploration & Development Program in June 2022 with the goal of establishing a Measured resource and increasing the lithium carbonate equivalent (LCE) grade on the Salar de Arizaro.
- Two diamond drill holes (ARDDH-02-8 & ARDDH-03-7) completed at the Arizaro Project
- Both holes encountered brine rich formations in areas not previously drilled.
- Results from drilling provide for significant resource upside on the Project.
- 505-metres to 506.5-metres 282 mg/l Li
- 524.7-metres to 526.2-metres 300 mg/l Li
- More sample results from the lower section of the well are pending
- Ausenco Engineering was contracted in early September and has commenced work on the Company's Pre-feasibility Study (PFS) further advancing the economics and engineering on the Arizaro project. It is anticipated that the PFS will be completed by April 2024.
ARDDH-02-8 has been drilled to 538 metres with a very brine-rich, sandy formation encountered at 487 metres. Onsite sampling with the field Turbospec analyzer on six samples collected over 51 metres, returned lithium grades between 297 mg/l and 319 mg/l. Samples sent to the laboratory reported the following grades:
The results from ARDHH-02-8 represent a significant exploration upside for the northern part of the Project, where the Company currently does not have any Mineral Resource Estimate.
Chile Operations:
- Molle Verde Project: A 100% owned, 35,500-hectare property with historic drill results showing lithium grades up to 343 mg/l. The Company completed a 74-kilometer TEM geophysical program over the claims to define the highly conductive targets on Molle Verde. A four-hole, exploration program began in July of 2023.
- Three diamond drill holes completed on the Molle Verde Project
- All three holes encountered brine with two holes displaying good porosity.
- While sampling is being completed at Molle Verde, Lithium Chile will commence exploration work at its Aguilar property. This work will include sampling grid and TEM geophysics to define the position of three exploratory holes.
Steve Cochrane, President & CEO comments, “We are very pleased with the speed of the advancement of our Arizaro project to the pre-feasibility stage. The results from the two new diamond drill holes drilled in previously unexplored areas of our Arizaro property point to the potentiality of a significantly larger resource. We are also extremely encouraged with the increased interest seen recently in our Chilean properties by major mining companies. The latest proposed changes to the lithium mining regulations in Chile provide a stable regulatory environment and are encouraging new investment.” (See news release dated October 17, 2023)
Joint Ventures – Chile
Joint Ventures are consistent with the Company's goal to maximize the return of the Chilean assets while focusing on developing the Arizaro project through the Phase Two Program.
Laguna Blanca – 14,700 hectares
Joint Venture with Monumental Minerals Corp. for an option to acquire up to 75%
TURI – 8,500 hectares
Joint Venture with Monumental Minerals Corp. for an option to acquire up to 50.01%
LAS GARILLAS – 1,900 hectares
Joint Venture with Volos Minerals Inc. for an option to acquire up to 51%
Additional joint ventures in Chile currently being negotiated.
Steve Cochrane, President & CEO
Mr. Cochrane has 36 years of investment industry experience during which he has been instrumental in raising in excess of $500 million for “small cap” public companies. Mr. Cochrane's extensive capital market experience will be an invaluable asset as Lithium Chile continues with the rollout and expansion of its lithium strategy.
José De Castro Alem, President of South America Operations
Chemical Engineer with deep experience in international mining operations and commercial management. Specializing in process engineering, mining, and resources management operations. Held key operations & executive positions in mining organizations in Argentina and Chile. Was manager at Oro Cobre on Salar de Olaroz charged with building the production plant and evaporation ponds. Oro Cobre was sold to Galaxy for US$3.2 billion in 2022.
Michelle DeCecco, Vice President & COO
Ms. DeCecco brings deep capital markets, investor relations, and corporate development experience to Lithium Chile, with over 20 years in the public mining sector. Expertise in developing and executing corporate strategies including acquisitions, JV's and strategic partnerships. Ms. DeCecco holds a Masters Degree in Business.
Jana Lillies, Chief Financial Officer
Ms. Lillies has over 25 years of experience within the mining industry, as a CFO for several publicly listed Companies including Lithium Chile Inc., PetroFrontier Corp. and Elkwater Resources Ltd. Ms. Lillies completed an Applied Bachelor of Business Administration Degree, and holds a CGA, CPA designation.
Terry Walker, VP Exploration & Chief Geologist
Mr. Walker, M.Sc., P.Geo., is a highly experienced exploration geologist and technical team leader. He has spent over 27 years in Chile's mining industry, with a particular focus on lithium, and is well connected throughout the sector. Mr. Walker is the co-founder of GeoServicios Piedra Dorada – an exploration and development services company.
On December 19, 2024, Lithium Chile Inc., on Dec. 16, 2024, executed a binding letter of intent (LOI) with an arm's-length party for the sale of Lithium Chile's 80-per-cent interest in the Arizaro project, marking a transformative milestone for the company and its shareholders. Transaction highlights:
- Proposed sale: The buyer will acquire an 80-per-cent interest in the Arizaro project via the purchase of the company's wholly owned Argentinian subsidiary, Geo Inversiones Mineras S.A.
- Transaction value: The purchase price is $180-million (U.S.) (approximately $250-million (Canadian)), to be paid in cash at closing, representing a substantial premium to the company's current trading price.
- Closing conditions: Completion of the transaction remains subject to certain conditions, including:
- Satisfactory completion of a second round of due diligence by the buyer;
- Government and regulatory approvals and consents, including that of the TSX Venture Exchange, which includes shareholder approval;
- Completion of definitive agreements pertaining to the sale. The signatory to the definitive agreements will be the buyer or a company controlled by the buyer.
- Exclusivity period: The LOI provides a 90-day exclusivity period.
Steve Cochrane, president and chief executive officer, commented, "Closing of this transaction will unlock the tremendous value of the Arizaro asset for the benefit of all Lithium Chile shareholders." He continued: "We will be able to deliver a substantial cash dividend to our shareholders all the while retaining our other significant assets in Argentina and Chile. I would like to extend my thanks to our stakeholders for their continued support while we proceeded with our strategic process."
On December 09, 2024, Lithium Chile Inc. has entered into a purchase agreement with LitiAr S.A. to acquire an additional 17.8-per-cent interest in the Salar de Arizaro, Argentina project. This acquisition increases Lithium Chile's interest in the Arizaro project to 80 per cent, which recently reported a pretax net present value (NPV) USD $3.8-billion (U.S.) in a National Instrument 43-101-compliant prefeasibility study.
Under the terms of the agreement, Lithium Chile will pay for the additional interest through the issuance of 19 million common shares and a cash payment of $2.7-million (Canadian).
This acquisition is required to complete the company's objective of consummating a sale transaction on the Arizaro project in Argentina, the objective of the strategic process initiated on Sept. 21, 2023.
Steve Cochrane, president and chief executive officer, commented: "We have been in negotiations on this acquisition for some time now. This component of our overall objective could not be completed until the company finalized earning of its interest in the Arizaro project by making the final payment and finalizing the prefeasibility study, each of which was completed recently. We remain committed to capitalizing on the value we have built on the Arizaro project, which is a world-class premier lithium project."
On December 02, 2024, Lithium Chile Inc. has received TSX Venture Exchange approval of the previously announced spinout transaction of its subsidiary, Kairos Gold Inc., into a stand-alone company owning the Chilean gold, copper and silver properties previously held within Lithium Chile, to be completed by way of a plan of arrangement involving Lithium Chile and Kairos Gold. The Kairos arrangement will close effective Dec. 4, 2024.
Pursuant to the Kairos arrangement, shareholders of Lithium Chile will receive one common share of Kairos Gold for each 10 common shares of Lithium Chile held by them on Dec. 3, 2024, which is the distribution record date for the Kairos arrangement. Following the completion of the Kairos arrangement, Kairos Gold will be a reporting issuer pursuant to applicable securities laws.
Michelle DeCecco, vice-president and chief operating officer, comments: "The completion of the spinout aligns with the company's broader objective, which includes segregating assets in order to complete a transaction on Arizaro as part of the strategic process initiated on Sept. 21, 2023. Additionally, with gold prices remaining strong and market fundamentals supporting sustained demand, this spinout provides our shareholders with a meaningful opportunity to participate in a gold exploration venture leveraging previously unvalued assets within Lithium Chile."
On August 07, 2024, Lithium Chile Inc. has provided an update on the proposed spinout transactions involving two newly formed subsidiaries: Lithium Chile 2.0 Inc. and Kairos Gold Inc. It is intended that Lithium Chile will continue to hold its advanced Salar de Arizaro lithium project while the remaining lithium salar properties will be transferred to Lithium Chile 2.0 and the properties that are prospective for gold, copper and silver will be transferred to Kairos Gold. The shares of both Lithium Chile 2.0 and Kairos Gold are intended to be spun out to the company's shareholders after a special meeting of shareholders to approve the proposed transaction. Materials enabling shareholders to make an informed decision on the merits of the spinout transactions have been filed with the TSX Venture Exchange, with first comments having been received on July 31, 2024.
The time required to complete National Instrument 43-101 compliant technical reports, together with independent valuations of the company's properties -- amongst numerous other documents and the need to obtain exchange approval -- has required that the company delay the special meeting of shareholders until Oct. 7, 2024.
Lithium Chile has applied to list the common shares of Kairos Gold on the exchange with that spinout transaction occurring immediately after the Oct. 7, 2024, special shareholder meeting.
On July 23, 2024, Lithium Chile Inc. has successfully completed the prefeasibility study (PFS) for its flagship Arizaro project, located in Salta, Argentina. The PFS, prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, outlines the strong economic viability, environmental sustainability and long-term operational potential of the project. Highlights:
- Project location: Salar de Arizaro, Departamento de los Andes, provincia de Salta, Argentina;
- Production capacity: 25,000 tonnes per annum of battery-grade lithium carbonate (LCE);
- A life-of-mine (LOM) duration of 20 years;
- Mineral resource of 4,122,000 tonnes LCE:
- Probable mineral reserve of 490,000 tonnes LCE;
- Project economics:
- Pretax net present value discounted at 8 per cent (NPV at 8 per cent) of $3,853-million (U.S.);
- Average LiCo (lithium cobalt) price of $30,513 (U.S.);
- After-tax NPV at 8 per cent $2,829-million (U.S.);
- Pretax internal rate of return (IRR) of 42.1 per cent;
- After-tax IRR of 36.3 per cent;
- Pretax initial capital payback period 2.5 years; after-tax payback of 2.7 years;
- Initial capital cost (capex) estimated at $1,055-million (U.S.);
- Operating cost (opex) estimated at $5,457 per tonne (t) LCE.
Measured mineral resource: 261,000 tonnes LCE;
Indicated mineral resource: 2,237,000 tonnes LCE;
Inferred mineral resource: 1,624,000 tonnes LCE;
Building upon the success of the company's 2023 preliminary economic assessment (PEA), the PFS further solidifies the position of the project as a leading contender in the race for sustainable lithium production. The study is the culmination of a year-long, in-depth engineering and design process, incorporating valuable insights gained from successful 2023 direct lithium extraction (DLE) pilot plant trials and extensive in-house laboratory testing. The PFS confirms the effectiveness of DLE technology in efficiently extracting lithium chloride from the Arizaro brine, which is then purified and converted into high-quality lithium carbonate (Li2Co3).
On July 10, 2024, Lithium Chile Inc. has provided an operational update on its Salar de Arizaro project in Argentina. Lithium Chile has made significant advancements in its northeastern Arizaro claims. The latest sampling results from hole ARGENTO-06 are included. Highlights:
Lithium brine sampling results from Argento-06
Three airlift samples were taken over a 48-hour period returning the following lithium values:
- 652 milligrams per litre (mg/l) lithium (Li);
- 654 mg/l Li;
- 662 mg/l Li;
- These significant concentrations are anticipated to increase the resource volume attributed to the area of the well -- in the northeastern portion of the Arizaro claims -- which will also lead to classifying the resource into at least the indicated category.
Steve Cochrane, president and chief executive officer, remarked: "The results achieved from this new hole are yet another important step in our strategic process. The enhanced grades will drive increased resource volumes and transition us into the more confident indicated and measured resource classifications. We remain exceedingly confident that our Arizaro project is world class."
On June 28, 2024, The application to extend the expiry date of: (i) an aggregate of 6,922,817 outstanding common share purchase warrants issued by Lithium Chile Inc. as part of a unit of the company in connection with a non-brokered private placement arranged on Oct. 25, 2021, and further amended on Oct. 26, 2021, and on Oct. 29, 2021; and (ii) an aggregate of 5,774,279 warrants issued by the company as part of a unit of the company in connection with a non-brokered private placement arranged on Dec. 21, 2021, and further amended on Jan. 24, 2022, has been approved by the TSX Venture Exchange.
The 2021 warrants and the 2022 warrants are now set to expire on Sept. 30, 2024.
On June 17, 2024, Lithium Chile Inc. reminds its shareholders of its upcoming annual general meeting to be held on July 10, 2024, at 11 a.m. (MT). While AGM materials have been mailed to beneficial shareholders, all AGM material will also be available under the company's profile on SEDAR+ or the company's website on June 19, 2024.
Following the formal portion of the AGM, management will provide an update on the transfer of its Chilean lithium properties to Lithium Chile 2.0 Inc. and its Chilean copper/gold/silver properties to Kairos Gold Corp. These transfers are designed to enable Lithium Chile to pursue a transaction on its Argentinian assets, in alignment with the continuing strategic process led by PI Financial Corp. (see Lithium Chile news releases dated Feb. 14, 2024, and April 18, 2024).
Lithium Chile has been informed that the prefeasibility study will be ready for initial review before the end of June, 2024. While the results have not yet been finalized, there may be significant revisions to resource volumes, resource classifications and project valuation as a result of the PFS.
On June 14, 2024, Lithium Chile Inc. intends to extend the expiry date of an aggregate of 6,922,817 outstanding common share purchase warrants issued by the company as part of a unit of the company in connection with a non-brokered private placement announced on Oct. 25, 2021, and further amended on Oct. 26, 2021, and on Oct. 29, 2021 (the 2021 warrants). The expiry date of the 2021 warrants was extended to June 30, 2024, as approved by the TSX Venture Exchange, following the company's proposal to extend the 2021 warrants as announced on Oct. 17, 2023. The company proposes to extend the expiry date of the 2021 warrants to Sept. 30, 2024 (the 2021 warrant extension).
In addition, the company proposes to extend the expiry date of an aggregate of 5,774,279 warrants issued by the company as part of a unit of the company in connection with a non-brokered private placement announced on Dec. 21, 2021, and further amended on Jan. 24, 2022 (the 2022 warrants). The expiry date of the 2022 warrants was extended to June 30, 2024, as approved by the TSX-V following the company's proposal to extend the 2022 warrants, as announced on Jan. 12, 2024. The company proposes to extend the expiry date of the 2022 warrants to Sept. 30, 2024 (the 2022 warrant extension, and, together with the 2021 warrant extension, the extension).
Management believes this extension is justified to ensure that warrant holders have the opportunity to fully participate in the spin-out of shares of Lithium Chile's two new subsidiaries, Lithium Chile 2.0 Inc. and Kairos Gold Corp. (see Lithium Chile's news release dated April 18, 2024).
On April 18, 2024, Lithium Chile Inc. has created two, 100-per-cent wholly owned Canadian subsidiaries and has transferred Chilean projects as part of its spinout proposal aimed at segregating its Chilean and Argentinian assets.
Guided by the strategic process undertaken by PI Financial Corp. (news release of Feb. 15, 2024), the spinout is designed to allow Lithium Chile to pursue a transaction pertaining to its assets for both acquisition and capital opportunities in Argentina. Through this deliberate approach, the spinout initiative underscores Lithium Chile's commitment to delivering shareholder value and leveraging strategic opportunities in pursuit of its long-term objectives. Highlights:
- 22,629 hectares of Chilean gold properties are to be transferred to Kairos Gold Inc.;
- 111,978 hectares of Chilean lithium properties are to be transferred to Lithium Chile 2.0 Inc.
Steve Cochrane, president and chief executive officer, comments, "We believe this is the best course of action to pursue the development of our Chilean projects while creating a restriction-free path to enhance value for shareholders via our Argentina assets."
On April 09, 2024, Lithium Chile Inc. has made a substantial increase of 24 per cent to the resource at its Salar de Arizaro project in Argentina from the results of an updated National Instrument 43-101 compliant resource report. The company reports a new, increased project total of 4,122,000 tonnes of lithium carbonate equivalent (LCE) from measured, indicated and inferred resource categories. Highlights:
- Total LCE resource increased by 24 per cent since reporting the results of the preliminary economic assessment (see press release dated Aug. 8, 2023) for a new total of 4,122,000 tonnes LCE;
- The increased LCE resource related to the Salar de Arizaro project comprises:
- 261,000 tonnes in the measured category;
- 2,237,000 tonnes in the indicated category;
- 1,624,000 tonnes in the inferred category.
Steve Cochrane, president and chief executive officer of Lithium Chile, emphasized: "Increasing our lithium resource by 24 per cent marks substantial progress for our Arizaro project from just two additional wells. This yet again reinforces our belief that the Arizaro property is a world-class lithium project. Our team's relentless efforts in expanding the resource demonstrates their exceptional abilities, for which I extend my thanks." Mr. Cochrane continued, "With our strategic process proceeding, it is exceedingly exciting that the company is able to report such a significant resource increase."
On February 15, 2024, Lithium Chile Inc. has provided a corporate update following its Sept. 25, 2023, press release announcing the appointment of PI Financial Corp. as its corporate adviser to assist in evaluating various options on behalf of the board of the company and its shareholders.
At this stage of the Process, Lithium Chile is encouraged by the level of interest shown from third parties and looks forward to ongoing engagement with these parties in connection with a possible transaction relating to the Company's Salar de Arizaro assets in Argentina and its Chilean asset portfolio.
Lithium Chile is also investigating the potential of a restructuring initiative involving the separation of the Company's Argentinian and Chilean assets into separate independent companies. The Company believes that its current share price does not fully recognize the value of the Chilean assets and that by separating the Chilean asset portfolio from the assets in Argentina by way of a "spin-out", the Company and its shareholders may benefit from unlocking the value of the Chilean projects. Additionally, a spin-out should allow for a more straightforward transaction for third parties that are particularly interested in a transaction involving the Salar de Arizaro assets in Argentina.
January 12, 2024, Lithium Chile announced that it intends to extend the expiry date of an aggregate of 5,774,279 outstanding common share purchase warrants issued by the Company as part of a unit of the Company in connection with a non-brokered private placement announced on Dec. 21, 2021, and further amended on Jan. 24, 2022. The Company proposes to extend the expiry date of the warrants to June 30, 2024.
January 8, 2024, Lithium Chile announced that its 100% owned Argentinian subsidiary, Argentum Lithium S.A. (“Argentum”), has been awarded Block IV in the recently completed bidding round in the Salar de Arizaro. Block IV is an 8,445-hectare concession and was awarded by the Salta Provincial Mining and Energy Corporation (“REMSa”). Argentum was one of thirteen companies that competed in a public tender process that encompassed five different Blocks.
Block IV was the largest of the five blocks. Strategically located north of Lithium Chile's 20,800-hectare project in the Arizaro basin, Block IV is situated approximately 18 kilometers north of the ARDDH-02 well that the Company has already drilled.
Steve Cochrane, Lithium Chile's President, and CEO stated, “Being awarded Block IV is a wonderful achievement for us! It has the potential to significantly increase our lithium resource without the added expense. We have the equipment, capable team and infrastructure already in place, which positions us to swiftly advance the project. Adding an additional 8,400 hectares to our already substantial land position makes Lithium Chile a dominant player in the basin.”
Extensive geological data on block IV are already available – from an exploration program completed by Portofino Resources Inc. (“Portofino”) during 2023. Lithium Chile has signed a partnership agreement with Portofino outlining a joint venture arrangement. The agreement would enable Portofino to acquire a 50-per-cent net equity interest in Block IV, by contributing 50 per cent of award expenses and exploration costs. Completion of the joint venture is contingent on Portofino raising the necessary funds and entering into a definitive agreement – anticipated to be completed in the next 60 days.
October 17, 2023, Lithium Chile provided an update on its operations in Argentina and Chile.
Lithium Chile announces 300 mg/l lithium on new Arizaro exploration well, commencement of pre-feasibility study and operational update.