China Union Shares Fall Over Argentinian Brine Miner Acquisition Review
Shares of China Union Holdings declined following the company’s announcement that its planned acquisition of Argentum Lithium, an Argentine brine mining company owned by a Chilean firm listed on the Toronto. . .
Shares of China Union Holdings declined following the company’s announcement that its planned acquisition of Argentum Lithium, an Argentine brine mining company owned by a Chilean firm listed on the Toronto Stock Exchange, will be subject to a security review by the Canadian government. The company closed down 2. 4 percent at CNY4. 07 (approximately 60 US cents) in Shenzhen today, after experiencing an earlier drop of as much as 8. 2 percent. The firm received a correspondence from Canadian authorities on August 14, indicating that they would initiate a review within 15 days. This action stems from concerns that the investment in Argentum Lithium may impact Canada’s national security, according to a statement released yesterday. Last December, China Union agreed to purchase Argentum Lithium from Lithium Chile and its CEO, Steve Cochrane, for $175 million USD. Lithium Chile is publicly traded on Canada’s TSX Venture Exchange. Under the terms of the deal, China Union planned to acquire an 80 percent stake in the Arizaro project located in Argentina. Additionally, the company intended to divest a lithium exploration project and a water extraction venture owned by Argentum Lithium before the acquisition was finalized. Lithium Chile reached out to Canadian authorities in January, emphasizing that Argentum Lithium is not a Canadian entity, has no Canadian assets, employees, or office presence, and thus does not fall under the national security review requirements of the Investment Canada Act. As of now, the company has not received a response from Canadian officials. The Arizaro project comprises six mining permits for lithium-rich salt lakes covering approximately 205 square kilometers. It holds an estimated 261,000 tons of measured lithium carbonate equivalent, with total measured and indicated resources estimated at around 2. 5 million tons. A pre-feasibility study for the project was completed last December, indicating that the primary product will be lithium carbonate, a critical component in the manufacturing of lithium batteries.