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This acquisition comes after the announcement of another large investment by the Korean Posco, after a recent study multiplied by six the estimates of existing lithium carbonate in the famous salt flat.
Canadian-based Alpha Lithium Corporation announces that it has acquired the right, through its wholly-owned Argentine subsidiary Alpha Minerals, to purchase two mining properties, totaling 3,800 hectares, located in the well-known Salar del Hombre Muerto, Argentina.
Following two previous acquisitions in the same salt flat, Alpha now controls a 100% interest in 5,072 hectares in the Salar del Hombre Muerto and is the second largest landowner (second only to Posco ) on the Salta side of the salt flat.
According to the company in a statement published on its website, all of Alphas 5,072 hectares borders the Korean giant Posco, which announced last week that it would invest 4,000 million dollars in the Dead Man, above the planned investment. initially of 830 million dollars. This increase came after a drilling campaign increased its lithium carbonate equivalent estimate to 13.5 million tonnes, a six-fold increase over what was originally estimated when it acquired the property in 2018.
Brad Nichol, President and CEO of Alpha, commented: “The closing of this acquisition places Alpha among the lithium giants and establishes the company as a notable player in the worlds highest quality lithium brine. As in the case of our operations in the nearby Salar de Tolillar , our focus is solely on achieving production as quickly as possible. To that end, we expect to begin drilling at Hombre Muerto very soon." Nichol added: “The unique chemistry of the brine found in the Salar del Hombre Muerto makes it ideal for the production of very high-quality, battery-grade lithium products. LiventCorporation has proven this for more than two decades, having produced Hombre Muerto lithium concentrates and lithium products since 1998.”
Hombre Muerto, in Argentina, along with the salt flats of neighboring Bolivia and Chile, lies at the center of the so-called “lithium triangle”, which is claimed to hold the largest reserves of lithium brine in the world.
The acquisition
Argentina Prime Holdings (APH) has agreed to assign the right to acquire the properties to Alpha Minerals, a wholly owned Argentine subsidiary of Alpha, in consideration for the issuance of 2,500,000 common shares of Alpha to APH, subject to Alpha receiving all applicable regulatory approvals, including approval from the Toronto Stock Exchange and confirmation of the registration of title to the properties under Alpha Minerals in the Argentine mining registry.
Alpha Minerals has also agreed to assume Alphas obligation to pay up to $225,000 to the seller under the sale agreement. The first payment of $25,000 will be due upon approval of the Environmental Impact Report in connection with the Companys proposed exploration on the new property, and $200,000 will be due six months thereafter. APH may choose to receive up to 50% of the second payment in common shares of the company, issued at the prevailing market price at that time. |
