Alpha Lithium Corporation announced that it has acquired the right to obtain two mining properties totaling 3,800 hectares in Argentina’s famous Salar del Hombre Muerto through its wholly-owned Argentine subsidiary.
Image Credit: Shutterstock.com/ iurii
Following two prior acquisitions in the same salar, Alpha now owns a 100% interest in 5,072 hectares in the Salar del Hombre Muerto, making it the second-largest landholder (second to Posco) on the Salta side of the famed salar.
All of Alpha’s 5,072 hectares are immediately surrounded by Posco, a Korean conglomerate that announced last week that it would invest US$4 billion in Hombre Muerto, up from an initial US$830 million investment. This follows a drilling campaign that increased the property’s expected lithium carbonate equivalent to 13.5 million tons, a sixfold increase over the original estimate when it bought the property in 2018.
The closing of this acquisition places Alpha amongst lithium giants and establishes the Company as a noteworthy participant in the world’s highest quality lithium brine salar. As is the case for our operations in nearby Tolillar Salar, our focus is purely on achieving production as quickly as possible. To that end, we expect to commence drilling in Hombre Muerto very shortly.
Brad Nichol, President and CEO, Alpha Lithium Corporation
Nichol adds, “The unique brine chemistry found in the Salar del Hombre Muerto makes it ideal for production of very high quality, battery grade lithium products. Livent Corporation has demonstrated this for over two decades, as they have produced lithium concentrates and lithium products from Hombre Muerto since 1998.”
The “Lithium triangle,” which includes Hombre Muerto in Argentina and salars in neighboring Bolivia and Chile, is said to hold the world’s largest lithium brine reserves.
In exchange for the issuance of 2,500,000 common shares of Alpha, Argentina Prime Holdings Inc. (“APH”) has agreed to ascribe the right to procure properties to Alpha Minerals S.A., a completely-owned Argentine subsidiary of Alpha (“Alpha Minerals”), pertaining to Alpha receiving all applicable regulatory approvals.
This includes the approval of the TSX Venture Exchange and confirmation of registration of title to the properties under Alpha Minerals from the Argentine mining registry. Alpha Minerals has also accepted to take on Alpha’s obligation to pay the seller up to US$225,000 under the terms of the sale agreement.
The first payment of US$25,000 will be due when the Environmental Impact Report for the Company’s proposed exploration of the new property is approved, and the second payment of US$200,000 will be due six months later. APH might well opt to receive up to 50% of the Second Payment in the Company’s common shares, issued at then-current market pricing.
Source: https://alphalithium.com/