Alpha Lithium Corp. [ALLI-NE0, APHLF-OTC, A3CUW1-German WKN] said a hostile takeover bid from Tecpetrol Investments S.L., which has been rejected by the company, is scheduled to expire on September 22, 2023.
On June 9, 2023, Alpha said it had received an unsolicited takeover bid from TechEnergy Lithium Canada Inc., a subsidiary formed five days earlier by Spanish firm Tecpetrol Investments S.L. Alpha previously said Tecpetrol is offering to pay a cash consideration of $1.24 per share for all of Alpha’s issued and outstanding shares.
Alpha’s board of directors, based on the unanimous recommendation of its special committee of independent directors and in consultation with independent experts and external advisors, have recommended that Alpha shareholders reject the hostile bid, which they collectively and overwhelmingly viewed as opportunistic, and not in the best interests of Alpha or its shareholders.
Alpha said it cannot predict and will not speculate on Tecpetrol’s future actions leading up to the bid’s expiration, or what Tecpetrol may do if the bid expires. Alpha said it has no additional updates to provide on this matter.
Alpha Lithium is focused on the development of the Tolillar and Hombre Muerto salars in Argentina. In Tolillar, the company said it owns what may be one of Argentina’s last undeveloped lithium salars, an asset that cover 27,500 hectares in the heart of the renowned Lithium Triangle. Hombre Muerto covers 5,000 hectares.
Alpha said it recently added a renowned group of lithium chemistry experts to its team for the purpose of examining and evaluating different Direct Lithium Extraction (DLE) techniques that have shown to economically extract lithium at concentrations lower than 100 mg/L.
On September 20, 2023, Alpha Lithium shares closed at $1.11.
Meanwhile, the company said it has filed the results of a preliminary economic assessment (PEA) for the Tolillar lithium project under the company’s profile on SEDAR and on its website.
“Our strategic review process continues, and Alpha is well-positioned with our unique and highly attractive assets,’’ said Alpha President and CEO Brad Nichol. “We are engaged in ongoing and active discussions with multiple parties and are focused on producing meaningful value for our shareholders,’’ he said.
“Even with conservative estimates, Alpha’s Tolillar project continues to be a significant lithium carbonate project with exceptional and increased potential. Today’s filing of PEA #2 details the $2.3 billion net present value of the Tolillar project, and we look forward to realizing that value to the benefit of our shareholders.”
On July 17, 2023, Alpha announced a 70% increase in indicated resources and a 30% inferred resources increase.
