Lithium Chile (TSX-V:LITH) and China Union Holdings (SHE:000036) have agreed to extend the drop-dead date for the sale of the US$175 million ($249 million) Arizaro Project by 60 days to August 20.
The extension provides China Union additional time to obtain approval for transferring funds from China to pay the purchase price and development costs for the asset, which is located in Salta, Argentina.
Lithium Chile says the approval process is currently underway, with the agreement allowing for an additional extension to October 19 if required to satisfy closing conditions.
The company also notes no other amendments were made to the definitive share purchase agreement.
Lithium Chile CEO Steve Cochrane says the extension reflects progress toward satisfying the remaining closing conditions.
“We continue to work closely with [China Union] and appreciate its ongoing commitment to closing the transaction,” Cochrane says.
China Union is advancing the project during the extension period, having deployed a delegation of engineers and technical specialists to Salta in May for project planning, and recruiting a direct lithium extraction production manager.
Lithium Chile is a mineral explorer with a portfolio of lithium properties covering 106,136 hectares in Chile and 29,245 hectares in Argentina.
Write to Paula Fabe at Mining.com.au
