Research Report | ALPHA LITHIUM | OTC: APHLF | NEO: ALLI
This is a paid promotion by Alpha Lithium Corp.
Within Argentina’s coveted Lithium Triangle, a little-known junior has secured complete ownership of Tolillar Salar – potentially the last wholly-owned lithium salar in the country.
With a net-present-value of $1.7 BILLION and a market cap of just $173 million, Alpha Lithium Corporation (NEO: ALLI) (OTC: APHLF) is trading at nearly a 10-fold value gap.
With Alpha Lithium, you’re getting perhaps the biggest value on the market today.
A recently released Preliminary Economic Assessment estimates the value of the company’s Tolillar Project could be worth up to $1.7 billion.
Right now, Alpha Lithium is trading for a fraction of that.
But that’s not all.
In the report below, you’ll discover…
That happened after he made MILLIONS for his prior company.
You’ll see exactly why Alpha Lithium (OTC: APHLF, NEO: ALLI) is already the target of a hostile takeover by the largest construction company in Argentina.
This is like getting all the explosive upside potential of a grassroots exploration company – but de-risked.
Let me explain…
Located in South America, the Lithium Triangle spans the intersection of Bolivia, Chile, and northwestern Argentina.
This highly-coveted swath of land…
It may not be the golden city of El Dorado. But when it comes to lithium, it’s about as close as you can get.
And as the global demand for the white metal soars in the coming decade – the World Economic Forum projects it will more than TRIPLE over the next 7 years.4
The Lithium Triangle, and specifically Alpha Lithium (OTC: APHLF, NEO: ALLI) in Argentina, could offer investors a key opportunity to participate in the boom.
Argentina is quickly becoming a lithium powerhouse.
That would put them on the path to pass Chile, as the world’s second largest producer…
In only four years.8,9
It’s one of the top places for mining companies to do business.
You see, unlike Bolivia and Chile, the federal government plays a small role in Argentina’s lithium market.
Argentina is more similar to the United States – but instead of having states, it has provinces.
Their constitution grants the country’s 23 provinces the right to administer minerals (including lithium) on their land.
That means the power of the country’s minerals is in the hands of the provinces – so there is little fear over potential nationalization.
And Argentinian law gives tax breaks to miners – instead of imposing restrictions – further encouraging development.10
It’s why the S&P Global has named Argentina,
“Latin America’s premier destination for foreign investment looking for lithium projects”.
It’s why major players like Livent, Ford, and GM are racing to the country to secure their share of the multi-billion prize.
From 2018 to 2022, lithium investment announcements in Argentina soared… from $450 million to $8.022 BILLION.
That’s a multiple of almost 18 times over!11
Around 40 lithium projects, in different stages of exploration, are currently underway in Argentina.
More than any other country in the world.12
And at the heart of it?
Alpha Lithium Corporation (OTC: APHLF, NEO: ALLI) – possibly the continent’s most undervalued gem.
Alpha Lithium has two ongoing projects – one in Tolillar and one in Hombre Muerto.
Both are within Argentina’s valuable Lithium Triangle.
And there’s another major positive…
Both projects also fall within the Salta Province of Argentina.
Alpha Lithium’s most-advanced asset, Salar Tolillar, is a 100%-owned claim to 27,500 hectares.
That’s an area larger than the entire city of Tallahassee, the capital of Florida!14
It’s also one of the LAST remaining undeveloped salars in Salta Province.
You may be wondering what a “salar” is?
Major exploration has already taken place.
A newly released Resource Estimate found that the project contains an indicated resource of 3.6 million tonnes of lithium carbonate equivalent (LCE) with an inferred resource of 1.4 million tonnes of LCE.15
Using what the company is calling “conservative estimates”…
Preliminary Economic Assessment (PEA) values the project at $1.7 BILLION after-tax NPV, using an 8% discounted rate of return.16
With these figures, Salar Tolillar could generate an internal rate of return of 25.6% and $8.2 BILLION in free cash flow over a 35-year production life.17
But the current market cap of Alpha Lithium is only hovering around $173 million.18
To show just how big an opportunity this could amount to, just consider…
Last year, LitheA Inc. sold a 13,470 hectare claim in the Salta province for $962 million to Ganfeng Lithium.
According to Ganfeng, the project has an after-tax NPV of only $1.22 billion.19
Compared to LitheaA’s (now Ganfeng’s) claims, Alpha Lithium’s Salar Tolillar project has…
The availability of freshwater alone is huge when it comes to lithium mining.
You see, producing lithium requires a lot of water.
And in one of the driest places on earth – even drier than the Sahara Desert – this is an invaluable attribute.
An independent freshwater study confirmed Alpha Lithium’s freshwater source is more than capable of supporting 50,000 LCE tonnes per year.20 (The current PEA only accounted for 25,000 LCE tonnes per annum.)
And what’s more?
Alpha Lithium has only explored one-third of its Salar Tolillar claim.
There’s still thousands of acres left to test – offering even more potential upside for investors.
Given the PEA and land’s further potential, it’s no wonder Alpha Lithium has been such a sought-after target…
We’ll explain more on that in a minute…
Because Alpha Lithium’s Salar Tolillar project could be outshined by the company’s second claim, in Hombre Muerto.
Sector: Lithium Exploration
Symbols: NEO:ALLI, OTC:APHLF
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With over 25-years of lithium production history, Hombre Muerto is well understood to be one of the world’s top lithium brine locations.
It has the unique distinction of hosting the purest source of lithium brine in the world.21
And it’s also home to some of the largest (and most lucrative) lithium producers in the world…
Alpha Lithium’s claim in Hombre Muerto is smack dab in the middle.
The company’s 5,000+ hectares in this world-class lithium hub is bordered by both POSCO and Livent.
So far, Alpha Lithium has completed 56 vertical electrical sounding (“VES”) surveys, which have revealed significant brine presence.
Initial testing shows the company could expect lithium grades up to 1,200 mg/L of high-purity brine.23
The company has received its drilling licenses and is preparing the drill sites accordingly.24
But that’s not all…
Alpha Lithium has been pre-awarded 5,700 additional hectares of land in Hombre Muerto – potentially doubling the project’s current size.
The potential here could be enormous.
That’s why it caught the attention of one of the most successful mineral explorers in South America.
If you’re familiar with South American lithium, then you likely know of David Guerrero.
Over the past 20 years, he’s held various roles with Rio Tinto, senior management positions within Canadian Lithium 1, and was President to the Salta Mining Providers Chamber.
But most notable, he served as President of Galaxy Resources Argentina.
Now Galaxy Resources owned a land package in Hombre Muerto – right down the road from Alpha Lithium.
The company’s claim had 1.58 million tonnes of high-grade lithium carbonate equivalent… which Mr. Guerrero was instrumental in selling to major mining company POSCO for $280 MILLION.
But Mr. Guerrero wasn’t done – he knew the value of the Salta Province, and how much lithium it may hold.
So when he saw that Alpha Lithium scooped up its massive land package, Mr. Guerrero came knocking at their door…
First, he became a large shareholder – investing his own money in.
Then, he joined the team as Alpha Lithium’s country manager.
According to Brad Nichol, CEO of Alpha Lithium, “
Mr. Guerrero will also play a crucial role in the development of the company’s pilot plant which is well-underway.
Strategically located in Tolillar Salar, the pilot plant will demonstrate the company’s cutting-edge Direct Lithium Extraction (“DLE”) technology.
If you’re not familiar, DLE is a newly developed method for extracting lithium out of brine.
Goldman Sachs is calling it,
“A potential game changing technology”.26
It has the potential to cut the timeline for lithium extraction from a matter of months, to a matter of days.
Faster extraction could substantially improve a project’s returns, with the capacity to double lithium production compared to traditional methods.
It’s also more environmentally friendly and sustainable than traditional methods, which use evaporation ponds and high volumes of water.
Alpha Lithium has already successfully tested its in-house DLE technology in the lab.
It will be using the pilot plant to demonstrate that the results can be repeated and maintained under industrial pilot conditions.
– Brad Nichol, President and CEO of Alpha Lithium
The pilot plant has the potential to utilize brine from both Tolillar Salar and Salar del Hombre Muerto.
Testing is expected to begin within the next few months.
Of course, pilot projects cost money – which is another reason Alpha Lithium offers what we believe is tremendous value.
The company is cashed up with $35 million in the bank.
That’s more than enough for management to execute its growth plans.
And speaking of cash in the bank…
It’s very rare for a junior exploration company to undergo a hostile takeover attempt…
But when a company’s market cap is so far below its estimated underlying value – the shark’s are going to circle.
Which is why on June 2 Tecpetrol made an unsolicited bid to buy the company for $111 million (after accounting for cash).28
The Board of Director’s advised Alpha Lithium’s shareholders to reject the hostile takeover bid.
They called it “highly opportunistic” and “a stink bid that does not reflect Alpha’s full and fair value”.29
Tecpetrol has until September 22 to revise their offer.
The big question remains…
Will they increase it enough to entice the Board and shareholders?
Remember that Alpha Lithium’s wholly-owned Tolillar salar project on its own has a Preliminary Resource Estimate of $1.7 BILLION – more than 15 times what the current bid is at…
And that doesn’t even take into consideration the further exploration upside OR the company’s second project, Hombre Muerto.
Or will they let their bid expire?
Only time will tell. But one thing is certain:
Alpha Lithium’s projects are starting to attract the attention of some deep-pocketed players.
It may only be a matter of time before another company swoops in with an even better offer.
Yet, its market cap is sitting at a $173 million.
And Alpha Lithium (OTC: APHLF, NEO: ALLI) could offer investors the biggest margins on the market today – with an opportunity to secure a position and lock-in a nearly 10-fold gap.
Do your own due diligence, and discuss with your advisor today.
Sector: Lithium Exploration
Symbols: NEO:ALLI, OTC:APHLF
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11 Page 8, https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
13 Page 15, https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
14 106 square mile equivalent of 27,500 hectares. Tallahassee, Florida is 98.2 sq miles. https://en.wikipedia.org/wiki/Tallahassee,_Florida
18 Yahoo Finance market cap as of 22 August 2023
22 Market caps per Yahoo Finance, 22 August 2023
23 Page 15, https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
28 CAD$150 million price per Press Release, converted at 1USD to 1.35CAD https://alphalithium.com/alpha-lithium-files-directors-circular-recommending-shareholders-reject-tecpetrols-hostile-stink-bid/
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