March 3, 2022 / Vancouver, BC / Lithium South Development Corporation (the “Company”) (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ). Lithium South Development Corp. has completed the last payment for the acquisition of the 3,287-hectare Hombre Muerto North lithium project located in Salta province, Argentina, as initially announced on June 5, 2017. The final payment included the issuance of 1.75 million common shares at a deemed price of 58 cents to Jorge E. Moreno and Alba Silvia Sala (the vendors) pursuant to a mining exploration agreement with option to purchase dated May 17, 2017, as amended on Oct. 31, 2017, and April 22, 2018, entered into with the vendors regarding the Hombre Muerto North lithium project.
Pursuant to the payment schedule under the agreement, the company paid a total of US $5.65 million and issued a total of 10 million common shares to the vendors and has completed its obligations thereunder. The vendors agree to assign and transfer 100 percent of the rights of assignment, title, and interest in the property to the company free from any liens or encumbrances. The vendors shall retain a 3 percent royalty on the net return from the production of lithium carbonate and/or from any other product derived from brine operations.
About Lithium South
Lithium South is focused on developing the Hombre Muerto North lithium project, located on the Hombre Muerto salar, a major lithium-producing salar in Argentina. The property is adjacent to land under development by the Korean multinational corporation POSCO, which acquired the ground from Galaxy Resources Ltd. for US$280 million. The company completed a preliminary economic assessment of the HMN project in 2019, utilizing conventional evaporation extraction.
The company is evaluating conventional evaporation as a process method and direct lithium extraction (DLE) as an alternative method. In addition, the company is planning to potentially expand the known resource by drilling various areas of interest identified in a recent TEM survey. The company is awaiting approval of drill permits currently under review by the Mining Secretariat in Salta, Argentina.
On behalf of the Board of Directors
Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website: www.lithiumsouth.com
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