Lithium Chile Inc. (TSXV: LITH | OTCQB: LTMCF), a Calgary-based company holding lithium assets in Argentina and Chile, has released a corporate update disclosing an extension of its proposed Arizaro Project sale to China Union Holdings Ltd., a new CAD $2.5 million credit facility, and the termination of two joint ventures. The developments signal a period of strategic repositioning for the company as it works through outstanding regulatory conditions tied to the Arizaro transaction.

Key Points

  • Lithium Chile Inc. (TSXV: LITH | OTCQB: LTMCF) is a Calgary-based lithium exploration company with assets in Argentina and Chile.
  • Effective October 20, 2026, the company extended its Arizaro Project sale agreement with China Union Holdings Ltd. by 60 days, with a further 60-day extension possible subject to regulatory conditions.
  • A CAD $2.5 million credit facility was secured on October 20, 2026, from a company controlled by a director; the company's working capital deficit stands at approximately CAD $1.7 million.
  • Two joint ventures — Llamara/Molle Verde with Eramet and Laguna Blanca with Monumental Energy Corp. — have been terminated.

Arizaro Sale Extension Removes Exclusivity Restrictions for Lithium Chile

The amending agreement signed October 20, 2026, extends the term of the definitive sale agreement with China Union Holdings Ltd. by 60 days, with a conditional additional 60-day extension tied to two regulatory milestones: termination of the review by Canada's Foreign Investment Review and Economic Security division of Investment Canada, and receipt of Offshore Direct Investment approval from the government of the People's Republic of China. Notably, the amendment removes previous exclusivity restrictions and associated fees, giving Lithium Chile greater flexibility to evaluate other transactions while the parties continue working toward closing.

Director-Linked Credit Facility Addresses Lithium Chile's Working Capital Deficit

To shore up near-term liquidity, Lithium Chile entered into a CAD $2.5 million credit facility on October 20, 2026, with a company controlled by a director of Lithium Chile. The company's working capital deficit is estimated at approximately CAD $1.7 million. The facility was unanimously approved by the board, excluding the related director who abstained. The company clarified in this release that an incorrect MI 61-101 exemption was cited in its October 21, 2026 news release; the Credit Facility is exempt from formal valuation and minority shareholder approval requirements as the fair market value does not exceed 25% of the company's market capitalisation. TSX Venture Exchange approval remains outstanding.

Eramet and Monumental Energy Joint Ventures in Chile Both Terminated

Two Chilean joint ventures have now concluded. Eramet notified Lithium Chile of its decision to terminate the joint venture relating to the Llamara/Molle Verde salar, with finalising documentation completed October 23, 2026. Separately, Monumental Energy Corp. terminated its joint venture concerning the Laguna Blanca salar effective December 31, 2025. The release states that management intends to evaluate financing opportunities and strategic partnerships to advance its lithium assets in both Argentina and Chile following these exits.