Alpha Lithium Corporation (TSX.V: ALLI) (OTC: APHLF)
(Germany WKN: A3CUW1) (“
Alpha” or the
“
Company”) is very pleased to provide an
operational update on its 100% wholly owned, 27,500-hectare
Tolillar Salar, operations in neighboring Salar del Hombre Muerto,
as well as an update on the previously announced Uranium One
transaction (see November 29, 2022 news release), whereby Uranium
One agreed to acquire 15% of the Tolillar Salar for US$30 million,
implying a US$200 million asset value.
With over $44 million of cash in treasury, the
Company continues to operate and develop its 100% owned Tolillar
Salar and has confirmed, broad-based institutional support for the
project. Given the recent challenges experienced with Uranium One,
the Company has chosen to provisionally suspend closing of that
transaction. The Company adds that it has no knowledge of any
sanctions currently in place against Uranium One, its subsidiaries,
affiliates, or its executives and that this decision is being made
responsibly and in the best interest of shareholders.
Prior to this announcement, and without actively
marketing the project, the Company has received several inbound
expressions of interest from numerous parties, all of which are
multi-billion-dollar, experienced electric vehicle supply chain
related companies. Alpha is fortunate to have multiple development
paths for Tolillar Salar, one of which is to continue
independently, utilizing the Company’s significant cash reserves
and expert operational team.
Operational Update:
The Company has four drilling rigs commencing
operations on Tolillar Salar and is simultaneously initiating an
extensive, and detailed, high-powered Vertical Electrical Sounding
(“VES”) survey to extend the salar’s vertical and horizonal
horizons for lithium brine. This is the third VES campaign to be
undertaken by the Company and will consist of approximately 70
acquisition points. This latest VES campaign has incorporated the
previous two VES surveys and the production results from the
initial wells.
The four drilling rigs are focused on northern,
western, and eastern extensions to the Tolillar Salar. One of the
wells will be the second well into a recently discovered fresh
water source – a rare and critical requirement for lithium
production.
After two of the four new wells are completed in
Tolillar Salar, the Company intends to move two drilling rigs to
nearby Salar del Hombre Muerto, where the Company is amassing
significant, prime acreage in the heart of Argentina’s longest
producing and highest quality salar. The salar is currently home to
Livent Corporation, Allkem Limited (the recently merged Orocobre
Limited and Galaxy Lithium), and POSCO – all multi-billion-dollar
lithium operators.
Brad Nichol, President and CEO commented, “While
we’re disappointed after working so hard on the Uranium One
transaction for several months, we have also enhanced the asset
while the market conditions have significantly improved. For Alpha,
this is evidenced by the high level of unsolicited interest in both
Tolillar and Hombre Muerto. However, we currently have more than
enough cash on hand to continue developing both assets
independently, and we would only consider bringing in a partner if
the terms were highly favorable and accretive to our
shareholders.”
Alpha is currently undertaking a significant
expansion of the existing high-altitude, on-site camp and
facilities to house up to 400 personnel onsite for extended periods
of time. Additionally, the Company is considering constructing a
3-kilometer-long airstrip to facilitate faster and safer transfer
of personnel and equipment to and from both salars. Construction of
a multidisciplined pilot plant, capable of evaluating and comparing
several production technologies, will commence shortly. Design of
the pilot plant is almost complete. The Company will also construct
several evaporation ponds, which will be used for the evaluation of
on-site, high-altitude, year-round production alternatives.
Alpha remains committed to the original
objective of delivering a bankable feasibility study and
demonstrating the significant value of lithium that underpins
Tolillar Salar. To that end, our engineers are preparing a Request
For Quotes (“RFQ”), which will invite several of the world’s
largest and most experienced lithium engineering firms to submit
tenders for the preparation of a bankable feasibility study on the
Tolillar Salar.
The Company will continue to update the market
with relevant operational information as it becomes available.
ON BEHALF OF THE BOARD OF ALPHA LITHIUM
CORPORATION
“Brad Nichol”
Brad NicholPresident, CEO and Director
For more information:Alpha
Lithium Investor Relations Tel: +1 844 592
6337relations@alphalithium.com
About Alpha Lithium (TSX.V: ALLI) (OTC: APHLF) (Germany
WKN: A3CUW1)
Alpha Lithium is a team of industry
professionals and experienced stakeholders focused on the
development of the Tolillar and Hombre Muerto Salars. In Tolillar,
we have assembled 100% ownership of what may be one of Argentina’s
last undeveloped lithium salars, encompassing 27,500 hectares
(67,954 acres), neighboring multi-billion-dollar lithium players in
the heart of the renowned “Lithium Triangle”. In Hombre Muerto, we
continue to expand our foothold in one of the world’s highest
quality, longest producing, lithium salars. Other companies in the
area exploring for lithium brines or currently in production
include Orocobre Limited, Galaxy Lithium, Livent Corporation, and
POSCO in Salar del Hombre Muerto; Orocobre in Salar Olaroz; Eramine
SudAmerica S.A. in Salar de Centenario; and Gangfeng and Lithium
Americas in Salar de Cauchari.
Forward-Looking Statements
This news release contains forward-looking
statements and other statements that are not historical facts.
Forward-looking statements are often identified by terms such as
"will", "may", "should", "anticipate", "expects" and similar
expressions. All statements other than statements of historical
fact, included in this news release are forward-looking statements
that involve risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from the Company's expectations include the
results of further brine process testing and exploration and other
risks detailed from time to time in the filings made by the Company
with securities regulators. The reader is cautioned that
assumptions used in the preparation of any forward-looking
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, as
a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company.
The reader is cautioned not to place undue reliance on any
forward-looking information. Such information, although considered
reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this news
release are expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will update or
revise publicly any of the included forward-looking statements as
expressly required by applicable law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. No securities regulatory
authority has reviewed nor accepts responsibility for the adequacy
or accuracy of the content of this news release.
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