Lithium Chile Inc. and China Union Holdings Ltd. remain firmly committed to completing their proposed US$175 million transaction, despite receiving a regulatory review notice under the Investment Canada Act. The companies have set a revised drop-dead date of August 20, 2026, for the sale of the Salar de Arizaro project in Argentina.

The arrangement involves the sale of all outstanding shares of Argentum Lithium S.A., an Argentine corporation whose sole asset is a 62.2% interest in the entity operating the Arizaro lithium brine project in Salta Province. Lithium Chile continues to maintain that the transaction falls outside the jurisdiction of Canadian regulatory oversight because the target subsidiary operates entirely outside Canada, maintains no operations or place of business domestically, employs no Canadian personnel, and holds no domestic assets used in its business.

The regulatory intervention follows more than seven months of silence from Innovation, Science and Economic Development Canada after the company proactively submitted notification in January 2026. Lithium Chile intends to formally challenge the jurisdictional basis of the review while simultaneously evaluating alternative corporate structures to monetize the asset and ensure compliance with all applicable requirements. Proceeds from the transaction are earmarked for reinvestment into the company's broader asset base, which spans 11 properties covering 106,136 hectares in Chile alongside its 29,245 hectares at Arizaro. Technical studies for Arizaro previously outlined a Preliminary Economic Assessment with an after-tax net present value of US$1.1 billion.

“After receiving no response for more than seven months, we are understandably concerned by the timing of this notice and the uncertainty it creates for our shareholders. We intend to vigorously defend our position while at the same time evaluating every lawful alternative available to us to complete the transaction.” — Steve Cochrane, President and CEO

Meanwhile, broader transactional activity continues across the surrounding district, where NOA Lithium Brines Inc. entered into a non-binding term sheet with Summit Explore Corporation covering its Arizaro lithium brine property.

Read the full announcement: Lithium Chile Provides Shareholder Update Following Investment Canada Act Notice