Alpha Lithium Corp. Closed a Bombshell Deal Making Them the Second Largest “Lithium Triangle” Developer(19)
As Lithium Demand Continues to Skyrocket,(2) Could This Deal Unearth a Major Catalyst?
August 24, 2021
Lithium is running into a severe supply-demand situation.
The last time this happened, some of the world’s top lithium companies exploded.(11)
- Albemarle ran from approximately $45.60 to approximately $137
- Lithium Americas Corp. ran from approximately 93 cents to approximately $10.38
- Galaxy Resources Ltd. ran from approximately 15 cents to approximately $2.75
Now, it’s happening all over again.
All thanks to electric vehicle (EV) sales that are growing much faster than anyone expected.(15)
However, there’s just one problem. There’s not enough lithium supply.
Even the International Energy Agency just warned:
Alpha Lithium Corp. Canada TSX: (ALLI) U.S. OTC: (APHLF) is a mining company that owns 27,500 hectares (67,954) acres of the Tolillar Salar in the last remaining undeveloped hot spot in the Argentine region of the “Lithium Triangle.”(5)
But, the best part? It just closed a bombshell deal making them the second largest “Lithium Triangle” developer.(19)
Alpha Lithium stock has a history of making quick moves. Take a look at the chart below.(16) Here, it sat at $0.3911 on 9/25/20. Just 133 days later, it had more than doubled to hit $.08651 on 2/4/21.(17)
As of September 2, 2021, the stock opened at $0.4550, which could be undervalued compared to the rest of the industry. This might also be attributed to the recent ticker change on August 6, 2021.(18)
Longer-term, the stock could push higher given the current lithium supply-demand situation. Plus, the company may be sitting on 12,533 acres (5,072 hectares) of robust untapped reserves in the “Lithium Triangle.”(19)
Alpha Lithium Corporation engages in the acquisition and development of lithium brine deposits in Argentina.
Currently, the company is focused on developing its 100% owned Tolillar Salar, which may be one of Argentina’s last undeveloped lithium salars.
Even better, its neighbors are multi-billion-dollar lithium players in the renowned “Lithium Triangle,” including Galaxy Lithium, Livent, and POSCO.
- POSCO has a market cap of approximately $27.82 billion(12)
- Livent Corporation has a market cap of roughly $2.66 billion(13)
- Galaxy Resources has a market cap of about $1.33 billion(14)
Meanwhile, as of September 2, 2021, Alpha Lithium trades with a market cap of just $61.42 million.(20)
Even more encouraging, though, is that Alpha Lithium Corp. operates about 10 km from the most prominent and longest producing salar in Argentina – Livent Corp’s Fenix project.(9)
Alpha Lithium Canada TSX: (ALLI) U.S. OTC: (APHLF) Is Now the Second Largest Lithium Developer in Salta Province’s Hombre Muerto Salt Flats (19)
Salta Province Hombre Muerto is located in the coveted Lithium Triangle.
What’s so special about the Lithium Triangle?
According to Resource World:
Alpha Lithium’s Tolillar Salar is going after lithium supply in what may be the last remaining hot spot in that region. In fact:(6)
- The project currently consists of 10 Exploitation Concessions (minas) totaling 27,500 hectares registered in the Salar de Tolillar basin in the province of Salta, Argentina.
- The Tolillar project is located in the renowned Lithium triangle of Argentina, Bolivia, and Chile and within the Puna geological region of northwest Argentina.
- At Salar Tolillar, early-stage investigations have shown Lithium concentrations up to 504 mg/L in borehole samples in 2015. As of 2019, drilling licenses are approved for immediate commencement.
- The Tolillar project area has never been extensively explored. However, it is located uniquely close to many of the largest lithium producers that collectively serve a large segment of growing global demand.(6)
- Proximal to the Hombre de Muerto Salar (10km NW), the premier lithium brine basin in Argentina with high grade, low impurities (Li: Mg <4); Livent’s El Fenix operation has been in production for over 20 years.
On August 24, 2021, the company announced the option to acquire a 100% interest (the “Agreement”) in a strategic, high-value property in Argentina’s world-class Salar del Hombre Muerto. The property is comprised of 985 hectares, which brings the company’s total landholdings in Hombre Muerto to 12,533 acres or 5,072 hectares.(19)
Alpha has become one of the largest lithium developers in that area, second only to the Korean giant POSCO, which is expected to produce a commercial plant in Hombre Muerto in 2023.(19)
When evaluating the potential for any lithium investment, it’s essential to examine the quality of the company’s management. Calling Alpha Lithium’s management team “strong” may be an understatement.
Eng., MBA, President & CEO
Mr. Nichol is an international entrepreneur who has served and advised corporations on strategy and finance for over 25 years. He has served as both senior executive and director of several public and private enterprises across the finance and resource sectors throughout his career. He has led successive organizations through multiple rounds of private and public project financings, initiated and executed dual listings, established critical international and domestic financial relations, oversaw M&A, technical, operational, HR, investor relations, legal and regulatory functions as well as closing several accretive asset acquisitions and financings in multiple jurisdictions. Previously, Mr. Nichol worked at Schlumberger, the world’s largest oil and gas services firm, in various technical, managerial, marketing, and sales roles in North America, South America, and Europe. Mr. Nichol left Schlumberger to pursue his MBA at one of the world’s top-ranked business schools, the London Business School in the UK, and graduated with honors in 2003. Mr. Nichol also holds a BSc. in Mechanical Engineering from the University of Alberta. He has been a registered Professional Engineer since 1994.
Mr. Guerrero brings almost 20 years’ worth of international experience in the mining industry, ten of them related explicitly to lithium as a specialty product. He has held various roles with mining major Rio Tinto and senior management positions with Canadian Lithium 1 and with Australian-based Galaxy Resources. At Galaxy, he undertook a critical functional role in a recent $280M M&A transaction with giant Korean steelmaker POSCO for mineral resources at the Hombre Muerto salar, the best quality brine producing district in Argentina. Former President to Salta Mining Providers Chamber and AUSCHAM Argentina chapter’s Vice President, Mr. Guerrero, also brings indispensable local knowledge and communal leadership in Argentina’s Northern Region.
Mr. Steinke is a highly respected financial professional with over 15 years of experience in the international resource sector for both public and private companies. Since 2003, Mr. Steinke’s responsibilities have comprised all financial aspects of the companies, including debt and equity financings, corporate structure design and management, cash flow management and forecasting, legal and regulatory compliance, stakeholder engagement and reporting, dual listing execution, and management, and risk management.
Pedro Mauricio Torres
Metallurgical Engineer with 17 years of experience in Operation, Process and Projects of Chemical Plants; worked for 10 years in SQM SALAR where he participated in developing the new Lithium Hydroxide Plant, Expansion of Lithium Car-bon-ate Plant to 70 000 tons per year. Recently worked as Process Advisor for Galaxy Lithium, Tianqi Lithium, Eramet Chilean Lithium Salars.
Adrian Sergio Arias
Over 22 years of experience in Processes and Operation of Chemical Plants, the last 7 years dedicated to the development of technologies and process improvements for the processing of Lithium brines, work in EXAR with the Canadian Lithium American Company in the development of the project of Lithium Cauchari and recently the Process Manager of Galaxy Lithium SA in the Sal de Vida Project in the Salar del Hombre Muerto.
15+ years of capital market experience and an established financial network. Mr. Jones was an Investment advisor with PI Financial Corp Canada and Raymond James Ltd Canada. He was responsible for raising significant risk capital for growth companies in all sectors, with a particular focus on natural resources.
Mr. Wilson has over 30 years of experience in exploration and development ranging from reserve drilling and estimation, feasibility studies, mine permitting and development. He has worked in various capacities for Placer Dome, Echo Bay, American Bonanza Gold and various junior exploration companies. Foster also currently serves as President of Mesa Exploration.
Director & Corporate Secretary
A seasoned communications professional with experience in raising capital and marketing resource exploration companies. His network of contacts within the financial community extends across North America and Europe. Mr. Charland also serves as a Director of Maple Gold Mines Ltd., Arctic Star Exploration Corp., Eyecarrot Innovations Corp. and Voltaic Minerals Corp.
Andrew Hallett is a commodity transaction specialist with over ten years of cross commodity investment experience within investment banking, trading, and asset management. Mr. Hallett is currently a Partner within Rice Capital Partners, an investment advisor specialised in alternative investments, with specific focus on upstream metals and mining investments in critical raw materials. Mr. Hallett received a BA in Economics from the Augustana Faculty of the University of Alberta, and an MSc in Finance from the London School of Economics. Mr. Hallett was previously a director within the Commodities Investments group at BTG Pactual Commodities responsible for all principal investments and structured finance transactions in metals and mining and energy. His prior experience includes commodity investment roles within Global Markets at Deutsche Bank as a senior structured originator, and as a Director at Natsource Asset Management.
Chris Cooper has over 20 years of experience in management and finance in the oil and gas, mining and technology industries. Mr. Cooper received his B.A. from Hofstra University and his M.B.A. from Dowling College, both in New York State. He has been involved in the creation and funding of several oil and gas issuers including Choice Resources Corp., an intermediate oil and gas producer before it was taken over in August 2007 by Buffalo Resources Corp. Mr. Cooper also sits on the board of other junior public companies, including: Counterpath Corporation; Westridge Resources Inc. (CSE); Bullion Gold Resources Corp. (TSX.V); and Planet Mining Exploration Inc. (TSX.V). He has sat on the audit committee of many public companies in several different industry sectors and has a broad comprehensive knowledge of financial reports.
Source 2: https://www.marketwatch.com/press-release/ev-automakers-will-have-to-brace-for-higher-battery-material-costs-2021-04-06-91973030?siteid=bigcharts&dist=bigcharts&tesla=y
Source 3: https://www.cnbc.com/2021/05/05/electric-vehicles-renewables-will-need-rise-in-mineral-supply-iea.html
Source 4: https://www.carbonbrief.org/iea-mineral-supplies-for-electric-cars-must-increase-30-fold-to-meet-climate-goals
Source 5: https://alphalithium.com/project/
Source 6: https://mk0alphalithium34c4d.kinstacdn.com/wp-content/uploads/2020/08/Alpha-Lithium-Corporate-Presentation-8-Mar-2021.pdf
Source 7: https://alphalithium.com/investors/#section-4
Source 8: https://www.barchart.com/stocks/quotes/ALLI.VN/opinion
Source 9: https://alphalithium.com/project/
Source 10: https://resourceworld.com/lithium-triangle/
Source 11: https://stockcharts.com/freecharts/perf.php?ALB,LAC,GALXF
Source 12: https://finance.yahoo.com/quote/PKX/
Source 13: https://finance.yahoo.com/quote/LTHM/
Source 14: https://finance.yahoo.com/quote/GALXF/
Source 15: https://www.autonews.com/mobility-report/ev-sales-growing-faster-expected
Source 16: https://tinyurl.com/3ehhkk2z
Source 17: https://tinyurl.com/8v9rch5n
Source 18: https://finance.yahoo.com/news/alpha-lithium-announces-united-states-200300734.html
Source 19: https://finance.yahoo.com/news/alpha-lithium-increases-core-position-130000803.html
Source 20: https://finance.yahoo.com/quote/ALLI.V/key-statistics?p=ALLI.V
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