Lithium Chile Inc. (CSE: LITH) has announced that the Government of Canada has formally notified China Union Holdings Ltd. (CUH) that it will conduct a national security review of CUH's previously announced plan to acquire all outstanding shares of Argentum Lithium S.A., the Argentine subsidiary holding Lithium Chile's Arizaro project. The review was ordered under section 25 of the Investment Canada Act, administered through the Innovation, Science and Economic Development Ministry. CUH has indicated it is reviewing the order and will advise Lithium Chile on its intended course of action once determined. The development introduces regulatory uncertainty into a transaction that had been moving toward completion.

Key Points

  • Lithium Chile Inc. (CSE: LITH) is an exploration company with properties in Chile and Argentina
  • Canada's government has ordered a formal Investment Canada Act review of CUH's proposed acquisition of Argentum Lithium S.A.
  • The review was initiated under section 25 of the Investment Canada Act; no timeline for completion was disclosed
  • Investors should watch for CUH's response and any further updates from Lithium Chile regarding the transaction's status

Investment Canada Act Section 25 Triggered on Arizaro Acquisition

Canada's Innovation, Science and Economic Development Ministry formally notified CUH on September 29, 2026, that the proposed acquisition of Argentum Lithium S.A. will be subject to a formal review under section 25 of the Investment Canada Act. This provision allows the Canadian government to examine foreign investments that may raise national security concerns. The announcement did not specify the grounds for the review or provide a projected timeline for its conclusion. The company did not disclose this figure in the announcement regarding any financial terms associated with the original transaction.

Arizaro Project's Strategic Profile at the Centre of Regulatory Scrutiny

The Arizaro project, located on the Salar de Arizaro in Argentina, spans 29,245 hectares and is one of Lithium Chile's most advanced assets. The company has completed an NI 43-101 compliant Resource Report, a Preliminary Economic Assessment, and a Prefeasibility Study for the property. The project's scale and strategic lithium resources appear to have drawn regulatory attention given the involvement of a foreign acquirer. Lithium Chile's broader portfolio also includes 11 properties covering 106,136 hectares in Chile, underscoring the company's regional footprint in lithium-rich jurisdictions.

CUH Reviewing Government Order Before Advising Lithium Chile

CUH has communicated to Lithium Chile that it is currently reviewing the government's formal order and will advise the company on its intended course of action once a decision is made. Lithium Chile stated it will provide stakeholders with updates as additional information becomes available. The outcome of CUH's deliberations could significantly affect whether the transaction proceeds, is restructured, or is withdrawn. The immediate share price impact was not clear from available public information at the time of this announcement.