Lithium South Development Corp. Completes Sale of Hombre Muerto North Project
Lithium South Development Corp. (TSXV:LIS) announced that it has finalized the sale of its wholly‑owned subsidiary, NRG Metals Argentina S.A., which held a 100 % interest in the Hombre Muerto North lithium brine property in Salta Province, Argentina. The transaction was executed under a Share Purchase Agreement dated 5 December 2025 with POSCO Argentina S.A.U. (99 %) and Posco Holdings Inc. (1 %), collectively referred to as POSCO.
Key Transaction Details
| Item | Description |
|---|---|
| Seller | Lithium South Development Corp. |
| Buyer | POSCO Argentina S.A.U. / Posco Holdings Inc. |
| Asset Sold | All issued and outstanding shares of NRG Metals Argentina S.A. |
| Project | Hombre Muerto North lithium brine property |
| Closing Date | 7 April 2026 (Buenos Aires) |
| Consideration | Cash payment of $65 million (POSCO’s reported purchase price) |
| Reserves | Project contains an estimated 1.58 million tons of lithium |
| Future Plans for POSCO | POSCO will now control 15 million tons of lithium brine resources in Argentina, sufficient to produce at least 3 million tons of lithium and supply batteries for approximately 70 million electric vehicles. POSCO already operates a 25 000‑ton annual lithium plant and plans to complete a second facility of comparable capacity in the latter half of 2026. |
Immediate Post‑Sale Actions
- Shareholder Payout: Registered shareholders must submit a letter of transmittal to Computershare Investor Services Inc. to receive the cash consideration. Other shareholders will receive payment through their broker or bank intermediaries.
- Delisting Process: Lithium South is applying to the TSX Venture Exchange (TSXV) to delist its common shares. Simultaneously, it intends to delist from the OTCQB market and cease reporting as an issuer. A formal bulletin from the TSXV is pending.
- Company Statement: CEO Adrian F. C. Hobkirk expressed appreciation for POSCO’s acquisition and wished the buyer success with the Hombre Muerto Salar.
Market Context
- Stock Performance: As of 8 April 2026, the share price stood at CAD 0.495, near the 52‑week high of CAD 0.51 (5 April 2026) and above the 52‑week low of CAD 0.09 (4 May 2025).
- Financial Metrics: The company’s market capitalization is CAD 66 320 000, with a price‑to‑earnings ratio of –13.44, reflecting the non‑profit status typical of exploration firms at this stage.
Strategic Implications
The sale transfers full control of a significant lithium brine resource to a major global player, POSCO, while providing Lithium South with immediate liquidity. The transaction aligns with industry trends toward consolidation and vertical integration, particularly in the lithium supply chain critical to electric‑vehicle battery production. The proceeds are expected to support the company’s ongoing exploration and development activities across its portfolio.
The information presented above is sourced from official press releases and reputable financial news outlets dated 10 April 2026.
