The company signed the LOI with Argentina Prime Holdings Inc., owner of the property, to issue 5 million common shares of the company in exchange for 100% of the issued and outstanding securities of Argentina Prime.
Alpha will find itself surrounded by major players in Hombre Muerto, known for its premium quality brine, offering record high lithium concentrations and exceptionally low impurities. This combination is proven to be excellent raw material for ultra-high-purity lithium chemicals. Hombre Muerto is the highest quality lithium deposit in Argentina. It is home to Livent Corp’s Fenix operation, which has been in commercial production for over 25 years.
On completion of the acquisition, Alpha will earn a 100% working interest in the property with no third-party royalties or encumbrances. A small Vertical Electrical Sounding survey has been conducted on the property, confirming the presence of the well-known, underlying productive zones of the Hombre Muerto Salar.
The company plans to immediately initiate drilling in the area. This approach is consistent with the aggressive exploration campaign Alpha has undertaken at its Tolillar salar operation located a few kilometres away.
The acquisition is subject to customary closing conditions. Alpha Lithium is focused on the development of the Tolillar Salar.