South Korean company Posco’s potential acquisition of the Hombre Muerto Norte (HMN) lithium project in Argentina for US$62mn underscores its ambitious growth strategy in Salta and Catamarca provinces. To secure financing for project development, Canada’s Lithium South – the current owner of the HMN property through the Sophia 1, 2 and 3 concessions, and the Hydra X and Hydra XI concessions – signed a letter of intent with Posco, which submitted the purchase offer for HMN. The purchase option arises at a time when lithium prices remain low, with current values below US$9,000/t of LCE. The location is strategic for Posco, one of the world’s largest producers of steel and battery materials, especially in terms of its lithium expansion plans. Lithium is a critical mineral for energy storage in the growing electromobility and renewable energy sectors.
SOURCE: BN AMERICAS