TSX-V-listed Alpha Lithium has entered into a letter of intent (LoI) to acquire an unencumbered, 100% ownership position of 3 800 ha in Argentina’s Hombre Muerto Salar, which is understood to be one of the world’s highest-quality productive lithium brine salars.
The company has signed a LoI to buy Argentina Prime Holdings, the owner of the property, for five-million common shares.
Alpha notes that it will be surrounded by major players in Hombre Muerto, which is 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’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. The company plans to immediately initiate drilling in the area.
“This incredible and sizeable acquisition is a huge opportunity for the company and supports Alpha's long-term vision of advancing the company into a lithium producer.
"Our team, who are very familiar with and experienced in Hombre Muerto, intimately understand its geology and brine chemistry and have a vast technical advantage over many other operators in the region, primarily based on their decades-long experience operating specifically in Hombre Muerto salar. After recently establishing proof of concept in Tolillar, today’s announcement is our first major move into a very well known, world-class, producing salar and I hope to continue on that trend,” says Alpha president and CEO Brad Nichol.