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Fort Capital Partners Acts as Financial Advisor to Alpha Lithium on Transaction with Uranium One

Transaction Details

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Alpha Lithium Corporation (“Alpha”) has announced a significant asset investment from Uranium One Group (“Uranium One”), whereby Uranium One has agreed to invest US$30 million in exchange for a 15% ownership stake in Alpha’s 27,500-hectare Tolillar Salar in Argentina (“Tolillar”).

As part of the transaction, Uranium One will also have the ability to acquire an additional 35% of Tolillar for US$185 million upon the completion of a Feasibility Study (the “Option” or the “Earn-in Right”), valuing Tolillar at US$529 million.

The primary use of proceeds will be focused on developmental drilling, construction of a 5 tpa LCE pilot plant, completion of a feasibility study, and the securing of key inputs including natural gas, electrical energy, and water supply at Tolillar.

Should Uranium One exercise the Earn-in Right, the US$185 million of proceeds are to be focused on the construction of an initial 10,000 tpa LCE commercial production facility.

Alpha is also eligible for a direct bonus payment depending on the net present value of Tolillar, as determined by the Feasibility Study, for up to a maximum of US$75 million.

Fort Capital Partners acted as financial advisor to Alpha Lithium with respect to the transaction.