Lithium South Development

Lithium South holds a large lithium project in Argentina with a very favorable metallurgical profile with high grade & low-impurity levels.

The company has a strategic partnership with the Chinese chemistry giant Chemphys. The company also has an ongoing earn-in agreement with Sino lithium to explore current DLE options showing great potential in initial testing (100% increase in extraction)

Lithium South Development in short

Net Present Value

$0.2B

$12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate:

0.6 Mt LCE

Measured & Indicated

Stage:

PEA

Completed

Project: Hombre Muerto North Summary

Net Present Value

$0.2B

$12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate

0.6 Mt LCE

Measured & Indicated

Stage

PEA

Last released technical report

Brine profile

Mg/Li
2.6
Sulphate/Li
11.7

Grade

756 mg/l

Location: Salta, Argentina
Completed Stage: PEA
Next Stage: PFS / Pilot plant

Website: lithiumsouth.com

Company Description

“The HMN Project is strategically located in the Hombre Muerto Salar, an area of active lithium production by FMC Lithium Co. at the Fenix lithium mine, some 12 kilometers south of the project area. The project is surrounded by ground now owned by POSCO, a Korean based lithium producer, as a result of its US$280 million purchase of the area from Galaxy Resources Ltd., an Australian-based producer. Galaxy Resources Ltd., is also moving their portion of the Hombre Muerto Salar, the Sal de Vida Project, to lithium production..”

Key takeaways:

1. High Grade & Low impurity levels

Hombre Muerto North holds high grade brine with very low combined sulphate and magnesium impurity levels.

2. Partnered with chemistry giant Chemphys

Partnered with the Chinese chemistry giant Chemphys on a strategic level. The partner holds a 100% off-take agreement from the Hombre Muerto North project

3. Lithium South has a DLE technology earn-in agreement with Sino Lithium

Lithium South has partnered with Sino Lithium who will be able to earn-in 30% of the Hombre Muerto North project upon the completion of the following terms :

1. Pay for development of DLE technology (lab work)  and pilot plant testing
2. Pay for 30% of the PFS 

4. Impressive DLE progress - Battery Qualified End-product

The DLE results represents a near 100% increase in lithium extraction, in comparison to the conventional evaporation process results completed by the Company. The laboratory test work shows good selectivity of the adsorption process, high Li adsorption, elution and total recovery rate and low adsorbent loss rate. Chemphys also determined that the intermediate lithium sulfate produced met the feedstock quality requirements to directly produce battery grade lithium carbonate.

Project: Hombre Muerto North Resources & Reserves

Resources

Reserves

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Project: Hombre Muerto North Key Figures

Initial capital costs

$93M

After-tax IRR

26.7%

$12000/t LCE pricing, 8% Discount rate

Operating Cost

$3122/t

LCE

Ownership

100%

Project: Hombre Muerto North Sensitivity Analysis : Forecasted pricing

Pricing forecast NPV 8% (After-tax) US$ IRR
$12000/t LCE*
$204 M*
26.7*%
$12420/t LCE
$217 M
37.7%
$15525/t LCE
$313 M
34.8%

*Interpolated value

Lithium South Development $LIS Current valuation

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Lithium South Development $LIS Company Financials

Debt

$ 0.6 M CAD

Sept. 20

Cash & Cash eq

$ 0 M CAD

Sept. 20,