TSX-V-listed Alpha Lithium has provisionally suspended closing of a $30-million transaction that would have seen Uranium One buying a 15% stake in the Tolilar Salar project, in Argentina, citing recent challenges.

Uranium One is a subsidiary of Russian State-owned group Rosatom.

Alpha Lithium said that it had no knowledge or any sanctions currently in place against Uranium One, its subsidiaries, affiliates or its executives. “This decision is being made responsibly and in the best interest of shareholders,” the company said on Tuesday.

Uranium One in November offered to pay $30-million for a 15% stake in Tolilar Salar, implying a $200-million asset value. The deal was part of Uranium One’s strategy of investing in non-uranium mineral resources.

“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,” said Alpha president and CEO Brad Nichol.

Meanwhile, Alpha reported that it had four drilling rigs starting operations on Tolillar Salar and was 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 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 Alpha 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, and Posco.