Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) successfully raised a little under USD$4 million and issued approximately 13 million units at $0.30 each during its recently closed private placement.
The company announced on Thursday that the proceeds from the placement will be used to develop its flagship HMN Lithium Project in Salta, Argentina and also for general working capital.
Each unit sold in the placement includes one common share of the company and one transferable common share purchase warrant. Each warrant allows the holder to purchase an additional share of the company at a price of $0.40 for five years from the closing date of the private placement.
The Salar del Hombre Muerto boasts a long history of lithium production, with Arcadium Lithium (NYSE: ALTM) (ASX: LTM) operating in the area just south of the HMN Li Project for over twenty-five years.
The HMN Li Project also shares a border with a USD$4 billion lithium development currently under construction by Korean chemicals giant POSCO Holdings (NYSE: PKX) and the Sal de Vida Project under development by Arcadium.
Exploration work at the HMN Li Project has identified a National Instrument 43-101 compliant resource of 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE) on the Alba Sabrina, Natalia Maria, and Tramo claim blocks.
These blocks are three of the five non-contiguous blocks that make up the HMN Lithium Project. On March 4, 2024, a recent Preliminary Economic Assessment outlined the potential for a 15,600 tonne per year lithium carbonate project, with a detailed report forthcoming.
Read more: Lithium South and POSCO Holdings ink mutual development agreement
Read more: Lithium South Development expands production goals, updates PEA on Hombre Muerto lithium project
Lithium South forms joint venture with POSCO
Lithium South has recently gotten involved with POSCO on a joint venture to develop a series of claim blocks at the HMN Li operation. The companies have agreed to split the production yield.
The Norma Edith and Viamonte contiguous claim blocks are located in an area of dual jurisdiction where both POSCO in Catamarca Province and Lithium South in Salta Province. Both companies have claims to the same ground but in different provinces. Preliminary data also suggests that the Norma Edith and Viamonte area has significant potential to enhance the scope of the HMN Li Project.
Lithium South and POSCO have agreed to collaboratively develop the Norma Edith and Viamonte claim blocks in order to find a solution and help both companies solve this problem and avoid a potentially costly, lengthy and uncertain legal battle. Additionally, the two companies will share the produced brine on a 50/50 basis.
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