Lithium Chile Inc. Secures $5 Million Private Placement to Propel Arizaro Project Sale

Lithium Chile Inc. (TSX: LIQ, CAD), the Calgary‑based materials company that specializes in lithium exploration and production, announced on September 18, 2025 that it has arranged a $5‑million private placement. The capital raise, which was confirmed by the company’s board and executed through a private placement memorandum, is intended to support the ongoing sale process of the Arizaro project in Argentina.

The Arizaro project, situated in the Argentine province of Jujuy, represents Lithium Chile’s most significant lithium asset outside Canada. The company has been actively negotiating a sale of the property, with a binding letter of intent already signed between Lithium Chile and a prospective buyer. The private placement proceeds will be used to cover transaction costs, complete due diligence, and ensure the sale reaches a definitive agreement in a timely manner.

Timing and Structure of the Placement

The private placement is structured as an equity offering of common shares. According to the offering documents, the shares will be sold to a select group of accredited investors at a price of CAD 0.57 per share, matching the current close price on the TSX Venture Exchange. The offering is expected to be fully subscribed within the next two weeks, giving Lithium Chile the liquidity required to finalize the Arizaro deal.

Impact on the Company’s Financial Position

Lithium Chile’s market capitalization sits at approximately CAD 118 million, with a price‑earnings ratio of 11.2. The infusion of $5 million will bolster the company’s balance sheet, reducing the reliance on short‑term debt and providing a buffer for future exploration and development projects. Analysts note that the additional capital will also allow Lithium Chile to accelerate its exploration pipeline in Canada, potentially adding new lithium brine prospects to its portfolio.

Update on the Arizaro Sale

In a series of announcements released on September 17, 2025, Lithium Chile confirmed that due diligence on the Arizaro sale was progressing smoothly. The company reiterated that the binding letter of intent had been signed and that negotiations are now focused on finalizing the definitive agreement. The sale, once completed, is expected to provide a substantial cash inflow that will further support the company’s expansion strategy.

Lithium Chile’s website, www.lithiumchile.ca , indicates that the company remains committed to responsible mining practices and community engagement in all its operating regions. The private placement and the Arizaro sale are seen as key milestones that will position Lithium Chile as a more competitive player in the global lithium market, particularly as demand for battery‑grade lithium continues to surge.

With the successful arrangement of the private placement and the ongoing sale process, Lithium Chile Inc. demonstrates a clear path toward enhancing its financial stability while advancing its exploration ambitions.