Letter of Intent for a Joint Venture and Project Funding
Lithium South Development (TSX-V: LIS) (OTCQB: LISMF) has signed a Letter of Intent (LOI) with an undisclosed private European for the development and financing of the Hombre Muerto North Lithium Project in Argentina. The key terms include:
- Up to US$10 Million capital loan procurement for completing a Definitive Feasibility Study (DFS)
- Project funding for 80% of CAPEX as defined in the DFS
- The Party earns 10% upon delivering a US$9M loan confirmation letter, and additional 30% upon confirming 80% CAPEX funding
- Option for Special Warrants worth US$1M, convertible to 10% of LIS shares
- 80% lithium production offtake rights with 4% commercialization commission
The agreement is subject to conditions including renegotiation of existing Chemphys/LIS offtake agreement, due diligence completion within 60 days, and various approvals.
Lithium South Development (TSX-V: LIS) (OTCQB: LISMF) ha firmato una Lettera di Intenti (LOI) con un privato europeo non divulgato per lo sviluppo e il finanziamento del Progetto Litio Hombre Muerto North in Argentina. I termini chiave includono:
- Fino a 10 milioni di dollari in prestiti di capitale per completare uno Studio di Fattibilità Definitivo (DFS)
- Finanziamento del progetto per l'80% del CAPEX definito nel DFS
- La parte guadagna il 10% al momento della consegna di una lettera di conferma prestito di 9 milioni di dollari, e un ulteriore 30% al momento della conferma del finanziamento dell'80% del CAPEX
- Opzione per Warrant Speciali del valore di 1 milione di dollari, convertibili in una quota del 10% delle azioni di LIS
- Diritti di acquisto dell'80% sulla produzione di litio con una commissione di commercializzazione del 4%
L'accordo è soggetto a condizioni, tra cui la rinegoziazione dell'accordo di acquisto esistente tra Chemphys/LIS, completamento della due diligence entro 60 giorni e varie approvazioni.
Lithium South Development (TSX-V: LIS) (OTCQB: LISMF) ha firmado una Carta de Intención (LOI) con un privado europeo no revelado para el desarrollo y financiación del Proyecto de Litio Hombre Muerto North en Argentina. Los términos clave incluyen:
- Hasta 10 millones de dólares en préstamos de capital para completar un Estudio de Viabilidad Definitivo (DFS)
- Financiamiento del proyecto por el 80% del CAPEX definido en el DFS
- La parte obtiene el 10% al entregar una carta de confirmación de préstamo de 9 millones de dólares, y un 30% adicional al confirmar el financiamiento del 80% del CAPEX
- Opción por Warrants Especiales por un valor de 1 millón de dólares, convertibles en el 10% de las acciones de LIS
- Derechos de compra del 80% de la producción de litio con una comisión de comercialización del 4%
El acuerdo está sujeto a condiciones, incluidas la renegociación del acuerdo de compra existente entre Chemphys/LIS, la finalización de la debida diligencia dentro de los 60 días y varias aprobaciones.
리튬 사우스 개발 (TSX-V: LIS) (OTCQB: LISMF)는 아르헨티나의 웅브레 무에르토 북 리튬 프로젝트 개발 및 금융을 위해 공개되지 않은 유럽의 민간 기업과 의향서(LOI)를 체결했습니다. 주요 조건은 다음과 같습니다:
- 최종 타당성 조사(DFS)를 완료하기 위한 최대 1천만 달러의 자본 대출 조달
- DFS에서 정의된 CAPEX의 80%에 대한 프로젝트 자금 조달
- 해당 당사자는 900만 달러 대출 확인서를 제공할 때 10%를 얻고, 80% CAPEX 자금 조달이 확인될 때 추가로 30%를 얻습니다.
- LIS 주식의 10%로 전환 가능한 100만 달러의 특별 보증 옵션
- 4% 상업화 수수료가 포함된 리튬 생산의 80% 매출권
이 계약은 Chemphys/LIS의 기존 매출 계약 재협상, 60일 이내의 실사 완료 및 다양한 승인과 같은 조건을 충족해야 합니다.
Lithium South Development (TSX-V: LIS) (OTCQB: LISMF) a signé une Lettre d'Intention (LOI) avec un investisseur privé européen non divulgué pour le développement et le financement du Projet de Lithium Hombre Muerto North en Argentine. Les principaux termes incluent :
- Jusqu'à 10 millions de dollars en prêts de capital pour compléter une Étude de Faisabilité Définie (DFS)
- Financement du projet pour 80% du CAPEX tel que défini dans la DFS
- La partie obtient 10% après la livraison d'une lettre de confirmation de prêt de 9 millions de dollars, et 30% supplémentaires après confirmation du financement de 80% du CAPEX
- Option pour des Warrants Spéciaux d'une valeur de 1 million de dollars, convertibles en 10% des actions de LIS
- Droits de vente de 80% de la production de lithium avec une commission de commercialisation de 4%
L'accord est soumis à des conditions, y compris la renégociation de l'accord d'achat existant entre Chemphys/LIS, l'achèvement de la due diligence dans les 60 jours et diverses approbations.
Lithium South Development (TSX-V: LIS) (OTCQB: LISMF) hat eine Absichtserklärung (LOI) mit einem nicht genannten privaten europäischen Unternehmen zum Thema Entwicklung und Finanzierung des Hombre Muerto North Lithium Projekts in Argentinien unterzeichnet. Die wichtigsten Bedingungen sind:
- Bis zu 10 Millionen US-Dollar Kapitaldarlehen zur Durchführung einer endgültigen Machbarkeitsstudie (DFS)
- Projektfinanzierung für 80% des im DFS definierten CAPEX
- Die Partei erhält 10%, nachdem sie ein Bestätigungsschreiben für einen Kredit über 9 Millionen US-Dollar geliefert hat, und weitere 30%, nachdem 80% der CAPEX-Finanzierung bestätigt wurde
- Option auf spezielle Warrants im Wert von 1 Million US-Dollar, umwandelbar in 10% der LIS-Aktien
- 80% Rechte an der Lithiumproduktion mit einer 4%igen Kommission für die Vermarktung
Die Vereinbarung unterliegt Bedingungen, darunter die Neuverhandlung des bestehenden Abkommens zwischen Chemphys/LIS, den Abschluss der Due Diligence innerhalb von 60 Tagen und verschiedene Genehmigungen.
- Potential securing of up to US$10M funding for Definitive Feasibility Study
- Project funding commitment for 80% of future CAPEX requirements
- Secured offtake agreement for 80% of lithium production
- Potential 40% project-level dilution through earn-in agreement
- 10% share dilution through Special Warrants issuance
- 60-day exclusivity period limiting other partnership opportunities
- Existing Chemphys offtake agreement requires renegotiation
Letter of Intent
The Company and a non-related party ( the "Party") which will remain confidential until the completion of a Definitive Agreement ("DA"), have entered into an LOI for the development and financing of the HMN Li Project. The Party is a private European corporation with strong financing abilities. The LOI was entered into with the approval of the majority of the board of directors of Lithium South. The following is a summary of the terms of the LOI:
1. On a best-efforts basis, the Party will procure a capital loan for up to
2. On a best-efforts basis, the Party will procure project Funding for
3. An earn-in at the project level whereby the Party earns
4. At the option of the Party and at completion of the Definitive Agreement, the Company agrees to issue to the Party Special Warrants for a price of
5. The Party will obtain rights to
6. The Party will be granted rights of first refusal in respect of the sale of any interest LIS holds in the HMN Li Project and any future placement of equity in LIS.
The foregoing arrangements are subject to LIS and the Party entering into a DA. Conditions Precedent to entering into the DA include renegotiation of the existing Chemphys/LIS offtake agreement to the satisfaction of the Party, completion of due diligence by the Party within 60 days (which has already commenced), the approval of each respective board, exchange and regulatory approval and no material adverse change in the business affairs of LIS or the Party.
During the 60 day period, the Company will not solicit any further business interests nor continue with discussions with current parties of interest.
Further details will be provided when available.
About Lithium South
Lithium South owns
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
Note 1: A report titled, Updated Mineral Resource Estimate – Hombre Muerto North Project, NI 43-101 Technical Report Catamarca and
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward- looking statements. We seek safe harbor.
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SOURCE Lithium South Development Corporation
FAQ
What are the key terms of LISMF's Letter of Intent for the Hombre Muerto North Project?
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