Alpha Lithium Corp. [ALLI-TSXV; ALLIF-OTC; 2P61-FSE] signed an arrangement agreement with its wholly owned subsidiaries, Voltaic Minerals (USA) Inc. and Beta Energy Corp., to undertake a spinout transaction that would reorganize the business and capital structure of the company to spin out its Green Energy Project located in Grand County, Utah.
The proposed spinout transaction will be completed by way of a plan of arrangement to be completed under the Business Corporations Act (British Columbia).
Under the proposed arrangement, Alpha will transfer to Beta, a wholly owned subsidiary of Alpha incorporated for the purposes of the spinout transaction, all of the company’s legal and beneficial interests in the Green Energy Project, including all of the shares of Voltaic and $5.0-million, in exchange for common shares of Beta.
It is intended that, as part of the reorganization, the company’s current shareholders will receive shares of Beta in proportion to their shareholdings in Alpha on the basis of 0.1 of a Beta share for each common share of Alpha held.
The proposed arrangement is subject to approval of Alpha shareholders and the approval of the TSX Venture Exchange and Supreme Court of British Columbia, among other things.
Alpha Lithium is focused on the development of the Tolillar and Hombre Muerto salars.
At Tolillar, Argentina, the company has a 100% ownership of what may be one of Argentina’s last undeveloped lithium salars, encompassing 27,500 hectares (67,954 acres) and neighbouring multibillion-dollar lithium players in the heart of the renowned Lithium Triangle.
At the nearby Hombre Muerto Project, the company is expanding its 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 Ltd., Galaxy Lithium, Livent Corp. and POSCO in Salar del Hombre Muerto; Orocobre in Salar Olaroz; Eramine SudAmerica SA in Salar de Centenario; and Gangfeng and Lithium Americas in Salar de Cauchari.