Alpha Lithium Corporation recently filed an Important Preliminary Economic Assessment (PEA) with the Toronto Stock Exchange (TSX). The new assessment has provided insight into the progress and potential of the company’s flagship ‘Lithium Claystone Project’ in northern Mexico.
The PEA indicated a projected Adjusted Pre-Tax Internal Rate of Return of 35% (at a discount rate of 8%) and a projected Adjusted Pre-Tax Net Present Value of $267M (at an 8% discount rate). Alpha Lithium expects to achieve a capacity of up to 17,500 tonnes of Lithium Carbonate Equivalent (LCE) annually and to record a Payback Period of 4.4 years.
Alpha Lithium is currently in the process of conducting a Strategic Review of its operations. The review process is expected to be completed in the first half of 2021 and will be focused on maximizing shareholder value. The strategic review could potentially result in a sale of the company, a merger, or a new business plan.
To further optimize its operations, Alpha Lithium has recently entered into two strategic partnerships: one with Grupo Forza and one with Talison Lithium. Grupo Forza, an established Mexican industrial group, will focus on providing strategic advice to management and optimization of its operations. Talison Lithium, a leading global supplier of lithium compounds, will offer assistance in product marketing and corporate structuring.
Alpha Lithium has previously provided project milestones throughout 2020 and projects to provide an updated mineral resource estimate at the end of the first quarter of 2021. This will be an important update for Alpha Lithium and its stakeholders, as it will likely provide a more accurate assessment of total project potential and risks.
In conclusion, Alpha Lithium Corporation has recently released a PEA that has potentially positive implications for the company’s Lithium Claystone Project. In addition, the strategic review process is currently underway, as well as two strategic partnerships with Grupo Forza and Talison Lithium, aimed at optimizing Alpha Lithium’s operations. The next key milestone will be the expected mineral resource estimate at the end of the first quarter of 2021. By keeping up to date with key developments, Alpha Lithium’s future prospects can be accurately gauged.