Alpha Lithium (ALLI) has signed an LOI to acquire 3,800 ha in Argentina’s Hombre Muerto Salar, one of the world's most renowned lithium deposits.
The company signed the LOI to acquire the property's owner, Argentina Prime Holdings, for 5 million Alpha Lithium common shares.
Hombre Muerto is known for its premium quality lithium brine, record high lithium concentrations and exceptionally low impurities. This combination yields excellent raw material for ultra-high-purity lithium chemicals.
The area is home to Livent Corp’s Fenix operation and Korean giant POSCO’s Sal de Oro Project. It is also home to Galaxy Resources, which recently announced a Au$4 billion merger with Orocobre Limited.
Upon completion of the acquisition, Alpha will earn a 100-per-cent working interest in the property with no third-party royalties or encumbrances.
The company plans to immediately initiate drilling in the area.
Brad Nichol, Alpha Lithium's President and CEO, commented,
"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."
Alpha Lithium is focused on lithium development in Argentina.
Alpha Lithium (ALLI) is up by 5.88 per cent and is currently trading at $0.72 per share as of 12:18 pm ET.