Alpha Lithium Corporation - APHLF stock
Company Details[edit]
Alpha Lithium Corporation is a lithium exploration company based in Canada. It focuses on acquiring and developing lithium brine deposits across North America and Argentina. The company leverages its connections and expertise to acquire significant and highly prospective land packages that have not been extensively explored. The firm commands 100% ownership of the Tolillar Salar project, located in the province of Salta, Argentina; the Green Energy lithium brine project, located in Grand County, Utah; and the Hombre Muerto project, stationed in Argentina. Alpha was initially known as Voltaic Minerals Corp. before changing its name in July 2019 to Alpha Lithium Corporation. The company was founded in 2009. It is headquartered in Vancouver, Canada. The company is publicly-traded on NEO under ALLI and OTC markets under the APHLF symbol.[1]
Privatization[edit]
Alpha Lithium Corporation shareholders approved the privatization of Alpha in a deal that will privatize the company by combining it wil 1446978 B.C. Ltd. which is a subsidiary of TechEnergy Lithium Canada Inc. Alpha shareholders will receive C$1.48 in cash per Alpha Share. The combined entity will be called Alpha Lithium Corporation.[2]
Tecpetrol[edit]
Bahamian investment company, Caravel Capital Investments Incorporated, released an open letter to all shareholders of Alpha Lithium. In the letter, Caravel highlighted the importance of accepting Tecpetrol's "Best and Final" bid of C$1.48. They clarified they have no prior arrangements with Tecpetrol. Caravel is also pushing the ALLI board to back Tecpetrol's updated proposal, emphasizing their duty to safeguard the shareholders' best interests. They pointed out that recent market movements indicate that if Tecpetrol's bid falls through, ALLI shareholders could face significant financial losses.[3] Caravel Capital, together with its main stakeholders, holds more than 4,500,000 regular shares in Alpha Lithium Corp.
Business Description[edit]
Alpha is a development stage company committed to the exploration and development of high-grade lithium brine deposits. The company propels its mission and agenda through its significant acquisitions in Argentina and North America. The firm is building on its acquisitions in Argentina’s "Lithium Triangle," recognized as the world's major source of lithium brine production and reserves. Alpha’s operations in 2022 have hugely concentrated on the two core areas, the Hombre Muerto Salar and the Tolillar Salar, intending to attain quick production to meet the constantly growing global demand for lithium. Argentina’s Lithium industry spotlight in 2022 shows it has the highest prices ever, with lithium carbonate being over US$85,000 per ton as of Sept. 30, 2022, and significant sale and acquisition activities.[4]
Project(s) Overview[edit]
Tolillar Project[edit]
Alpha solely owns the Tolillor project. The property stretches 27,500 hectares, with only 9,000 hectares (32%) explored. Preliminary mineral estimates as of September 2022 showed 2.11 million tonnes of indicated resources (LCE) and 1.16 million tonnes of inferred resources (LCE). The project locality infrastructure includes an airport, high-grade roads, a high-voltage electrical grid, a skilled workforce, rail, natural gas pipelines, and trucking infrastructure. The company has concluded all three drilling phases and is progressing with drilling on the asset.[5]
Alpha Lithium submitted an updated NI 43-101 mineral resource estimate for its Tolillar Salar, dated August 8, 2023. This comes a week after the company unveiled its initial Preliminary Economic Assessment, with an after-tax NPV of US$1.5 billion. The indicated resource saw an increase of 70%, amounting to 3.6 million tons of Lithium Carbonate Equivalent, while the inferred resource grew by 20%, totaling 1.4 million tons of LCE. Tolillar Salar is recognized as one of the world's final large, independent, and entirely owned lithium brine salars.[6]
Salar Hombre Muerto Project[edit]
The project sits on over 5,000 hectares in the premium lithium brine location. Alpha continues to acquire additional land stretching across the area. Alpha is expected to commence drilling activities on the property as soon as possible. The region is dubbed the “central hub” of lithium brine mining, with extensive infrastructure spanning 25 years of active production. It is characterized by world-class lithium brine quality, purity, production, cost, and regime. Salta province has the best mining policies in Argentina and is ranked third in South America for investment attractiveness. Vertical Electrical Sounding (“VES”) surveys in the Salar Hombre Muerto project indicate expected lithium grades of approximately 1,200 mg/L of high-purity brine (Mg: Li ~2.6). A total of 56 VES points and 28.5 km of VES lines have been completed in the project. The company has secured REMSA (Energy and Mining Resources of Salta) approval for an extended personnel camp.[7]
Lithium Market Overview[edit]
The global momentum to achieve carbon neutrality by 2050 is constantly gearing up, and lithium plays a significant role in the movement. The adoption of Electric vehicles (EVs), which use lithium-ion batteries, tremendously increases the demand for lithium. EV production is forecasted to grow by approximately 30% between 2020 and 2030 at a CAGR of 27%. The demand for lithium chemicals is also expected to jump another 24% (CAGR) between 2020-2025.[8]
Financial News and Key Press Releases[edit]
Alpha reported on Dec. 5, 2022, that one of the original vendors of Tolillar Salar, REMSA, had audited and approved all of the company’s investment expenditures to the mentioned date and excenerated Alpha of any further obligations under the REMSA Agreement. The contract was initiated on Jan. 23, 2019. The contract expiry means that Alpha has settled all earning commitments on the areas it acquired from REMSA. The company incurred capital expenditures of US$1 million and additional payments totaling US$210,000. The settlement has paved the way for the court to award the title of the underlying properties to Alpha SA.[9]
Alpha's operational and financial highlights for the three months ended Sept. 30, 2022, include:
- The company incurred a $3.2 million loss compared to the $2.5 million loss in the same period in 2021
- It pumped $3.4 million cash on operations compared to $1.5 million in the same quarter in 2021
- Generated cash proceeds of $2.3 million on options and warrants executed
- A technical report on the current status of explorations on the firm’s Tolillar Project on Sept. 8 included 11 brine exploration wells drilled to a maximum depth of 400 meters. The report estimates an indicated resource of 2.1 million tonnes of Lithium Carbonate Equivalent (LCE). Under the original purchase agreement for the underlying property in 2020, Alpha has penned a $1.8 million liability in 2,119,000 common shares expected to be issued on the backbone of the technical report’s completion.
- Alpha continues drilling activities in the wells on the asset and has made massive progress in constructing a pilot plant for the property.[10]
The company announced on Aug. 8, 2022, that it had received authorization from the NEO Exchange, one of Canada's senior exchanges, to list its common shares and certain warrants on the platform for trading. Upon uplisting, the company would automatically delist from TSXV, Canada’s TMX Group venture exchange.[11]
Leadership[edit]
Senior Management[edit]
Brad Nichol, President & CEO, Director, P. Eng., MBA
- Has more than 25 years of serving as both senior executive and director in public and private enterprises across the finance and resource sectors
- Has guided numerous institutions through waves of f private and public project financings, established key international and domestic financial relations, initiated and executed dual listings, oversaw M&A, technical, operational, HR, investor relations, legal, and regulatory functions
- He has also closed several accretive asset acquisitions and financings in multiple jurisdictions
- Previously worked in America and EuropeHe received his MBA at the London Business School (Honors 2003) and BSc. in Mechanical Engineering
- from the University of Alberta. He has been registered Professional Engineer since 1994[12]
Nathan Steinke, Chief Financial Officer
- Has over 15 years of experience for both public and private companies in the international resource sector
- His responsibilities have been based on financial aspects of companies since 2003, including cash flow management and forecasting, corporate structure design and management, debt and equity financings, legal and regulatory compliance, risk management, and stakeholder engagement and reporting.[12]
- ↑ seekingalpha.com/symbol/APHLF – Company Profile. Accessed on 12/12/2022.
- ↑ Yahoo Finance. Alpha Lithium Shareholders Approve the Privatization of Alpha Lithium by Tecpetrol. December 14, 2023.
- ↑ Investing News Network. Caravel Capital Urges Alpha Lithium Corporation Shareholders Tender to...September 25, 2023.
- ↑ DESCRIPTION OF BUSINESS AND OVERVIEW - ALPHA LITHIUM CORPORATION Management’s Discussion and Analysis for the three and nine months ended Sept. 30, 2022, and 2021, page 1. Retrieved on 12/12/2022.
- ↑ Tolillar Project Details – Alpha Lithium website
- ↑ Investing News Network. Alpha Lithium Files Significantly Improved Resource Estimate for Tolillar Salar, Argentina. August 21, 2023.
- ↑ Hombre Muerto Project Details - Alpha Lithium website.
- ↑ Robust Long-Term Demand Highlights the Need for Supply – Echelon Capital Markets. Retrieved on 13/12/2022.
- ↑ Alpha Lithium Finalizes Unconditional Deed for Tolillar Salar, Argentina – Yahoo Finance. Accessed on 13/12/2022.
- ↑ DESCRIPTION OF BUSINESS AND OVERVIEW - ALPHA LITHIUM CORPORATION Management's Discussion and Analysis for the three and nine months ended Sept. 30, 2022, and 2021, page 2.
- ↑ Alpha Lithium Conditionally Approved to Upgrade Listing to Senior Canadian Stock Exchange – Yahoo Finance.
- ↑ 12.0 12.1 ALPHA LITHIUM CORPORATE PRESENTATION - SENIOR MANAGEMENT, page 12. Retrieved on 13/12/2022.
OTC Symbol: APHLF
