China Union Holdings' Argentine lithium deal faces potential Canadian security review

On August 14, Hualian Holdings Co., Ltd. received a notification letter from Canada's competent authority for foreign investment review and economic security (FIRES). The Notice states that the company's investment in the Arizaro lithium salar project in Argentina may raise national security concerns for Canada and could be subject to further review under Section 25.3(1) of the Investment Canada Act within 45 days from the date of the Notice.

In accordance with the Share Purchase Agreement and the Amendment Agreement, Hualian Holdings and the seller are actively engaging with FIRES to address the matter and provide necessary responses. At this stage, the company is unable to assess the potential impact that this Notice may have on the project or its overall investment.