VANCOUVER, British Columbia, Nov. 29, 2021 (GLOBE NEWSWIRE) -- Alpha Lithium Corporation (TSX.V: ALLI) (OTC: APHLF) (Frankfurt: 2P62) (“Alpha” or the “Company”) is very pleased to announce a significant asset transaction with international, multi-billion-dollar, chemical processing conglomerate, Uranium One Group (“Uranium One”).

Uranium One’s wholly owned subsidiary, Uranium One Holding N.V. (“U1”), has agreed to invest US$30 million in exchange for a 15% ownership stake in Alpha’s 100% owned, 27,500-hectare Tolillar Salar in Argentina (“Tolillar”) and by doing so will earn an option to acquire another 35% of Tolillar for US$185 million (the “Option” or the “Earn-in Right”). If the Option is exercised, Alpha would retain a 50% interest in Tolillar, which would be fully funded up to the point of commercial production.

The transaction is limited only to Tolillar and when closed, is expected to leave Alpha with approximately $45 million of cash, free to focus expansion and developmental efforts on the Company’s nearby assets in the Salar del Hombre Muerto, one of the world’s most significant sources of lithium.

Alpha has formed a wholly owned subsidiary, Alpha One Lithium B.V. (“Alpha One”), which will be the sole owner of Alpha Lithium Argentina S.A., which in turn, will own only the Tolillar assets. On closing of the transaction, expected January 31, 2022 (the “Closing Date”), U1 will invest US$30 million into Alpha One and earn a non-operated 15% equity stake. Alpha will retain full control of Tolillar, management, and the board, and will be responsible for deploying the invested capital. The primary use of proceeds will be:

  • Additional developmental drilling and geophysical data gathering;
  • Construction of a permanent on-site camp to house up to 400 personnel;
  • Securing of natural gas, electrical energy, and water supply in sufficient quantities for commercial production;
  • Construction of a 5 Tonne per Annum (“tpa”) LCE pilot plant to provide proof of concept of the Tolillar’s flow sheet; and,
  • Completion of a Feasibility Study.

Upon completion of the Feasibility Study, U1 will have the option to acquire an additional 35% of Alpha One for US$185 million. Depending on the Net Present Value (“NPV”) of Tolillar, as determined by the Feasibility Study, the Company may receive a bonus payment (“Additional Consideration”) up to a maximum amount of US$75 million. The Additional Consideration would be payable directly to the Company, which would imply a total value of US$743 million for the Tolillar asset.



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https://www.globenewswire.com/news-release/2021/11/29/2342065/0/en/Alpha-Lithium-Secures-US-30-million-Investment-from-Uranium-One-with-Right-to-Invest-Additional-US-185-million-at-Tolillar-Salar-Argentina.html