FN Media Group Presents USA News Group News Commentary

VANCOUVER, B.C., Jan. 12, 2024 /PRNewswire/ — USA News Group  –  A new wave of mergers and acquisitions is on the rise in the lithium sector, in the wake of the latest successful takeover bid of Alpha Lithium Corporation by a leading Latin American energy company, Tecpetrol. After already announcing the acquisition of 102,692,615 common shares (54% equity) at a per-share bid price of C$1.48, Tecpetrol has officially now spent over C$150M on the Alpha transaction. That number could still climb, as the remaining ALLI shareholders have until Oct 31 to accept the offer for themselves, meaning even more lithium shareholders could be flooding the market with new cash to spend on other lithium plays with upside. This latest deal comes in the wake of the mega-merger between Allkem Limited (TSX:AKE) (OTCPK:OROCF) and Livent Corporation (NYSE:LTHM), analysts are turning their eyes toward more M&A activity in the space and other potential near-term takeout targets, such as Lithium South Development Corporation (TSXV:LIS) (OTCQB:LISMF), and Argentina Lithium & Energy Corp. (TSXV:LIT) (OTCQX:LILIF).

In the case of Lithium South Development Corporation (TSXV:LIS) (OTCQB:LISMF), the lithium developer recently announced that it had expanded it’s HMN Li Project  resource  by 175%. This material change in their flagship asset HMN Li’s resource estimate almost immediately gave Lithium South license to commission an updated Preliminary Economic Assessment (PEA) and expand upon its production goals.

“We are very pleased with our new updated lithium resource at the HMN Li Project,” said Fernando Villarroel, Company C.O.O. and Project Manager of Lithium South when the company announced the resource expansion. “The quality of the brine has exceeded our expectations.”

The company has already begun a pumping well/production well installation program  for three of the five claims that make up the HMN Li Project. The first well has been completed at the Natalia Maria claim block to a depth of 60 meters to take advantage of the observed geology. At this location, a core well returned an impressive 1176 mg/l Li back in April 2023.

Lithium South originally published an NI 43-101 PEA for the project back in 2019, when it only had a defined resource of 0.57 Mt Lithium Carbonate Equivalent (LCE) and the market price for lithium was assumed to be US$12,420 per tonne over the duration of the project. Today in 2023, the HMN Li has a newly calculated resource of 1.583Mt of LCE (with 90% attributed to the top ‘Measured’ category), and the lithium market price has stabilized at around $ 22,000  per tonne.

As well, the salt flat called Salar de Hombre Muerto, where HMN Li is located, has attracted billions of dollars in investment—most notably from Korean giant POSCO. Back in 2022, POSCO committed to investing US$4 billion on its Sal de Oro Lithium project, which is located immediately adjacent to the edge of the HMN Li project’s border. Now in 2023, POSCO has announced a US$800M investment then another US$1.7B investment into Argentina to support the project. Most recently, POSCO also announced a potential investment in a direct lithium extraction technology ( DLE ) )being developed by EnergyX . While not a yet commercially applied technology, DLE is gaining market interest as it can boast high recovery rates.

All of this nearby activity is reflecting upon projects like Lithium South’s, as well as for peers such as Argentina Lithium & Energy Corp. (TSXV:LIT) (OTCQX:LILIF) which recently commenced drilling on at Rincon West project in a campaign designed to explore the contiguous Rinconcita II concession and provide an eastward extension of their flagship project. So far the project has already captured the attention of Stellantis, to the tune of a US$90M equivalent investment from the auto giant.

“The USD 90MM equivalent investment in our company by automotive giant Stellantis comes with the mandate to accelerate exploration at our core projects, with the aim of advancing to the assessment of development potential as quickly as possible,” said Nikolaos Cacos, CEO of Argentina Lithium. “We anticipate increasing the scale and number of our exploration programs as permits are received for our projects. This is a big undertaking, and we are now well financed to aggressively move forward with this work.”

According to the company, the Rinconcita II property extends Argentina Lithium’s holdings eastwards over the salt flat that has not previously been explored. The current drill program is intended to verify the presence and lithium grades of these brines, in order to incorporate them into the resource model they’re building for Rincon West.

Within the Argentina portion of the prolific Lithium Triangle, the mega-merger between Allkem Limited (TSX:AKE) (OTC:OROCF) and Livent Corporation (NYSE:LTHM) is set to reshape the lithium landscape to create the world’s third largest lithium miner by production capacity. Now that all competition and foreign approvals have been acquired, there is a lot of momentum behind the $10.6-billion merged entity.

“It really comes down to one key point which is: Our customers need us to get bigger,” said Livent CEO Paul Graves, who will lead the new entity. “They need more lithium, and developing lithium resources is not a game for small companies.”

According to Graves, combining Allkem and Livent should create a company with greater scale, a larger product range and a wider geographic footprint to meet the growth in lithium demand. This results from putting together Livent’s expertise in lithium processing, with Allkem’s large resource base and skill set in producing lithium using both brine-extraction and hard rock mining techniques.

Now with the entry of Tecpetrol into the space through the successful takeover bid of Alpha Lithium Corporation there’s another major player in the scene. In the wake of the takeover’s conclusion, Alpha announced it had completed drilling two wells on one of its existing properties in Hombre Muerto. Both wells encountered multiple brine bearing zones and, as they were both drilled as producing wellbores, are currently being flow-tested. Samples from each well were collected during initial pumping, serving as composite chemistry for the entire screened interval of the well and are more representative of the chemistry that would be expected from that well during production pumping.

Moving forward, in the near term, shareholders of ALLI have an expiry time of October 31, 2023 to tender their shares if they want to sell to Tecpetrol. As of the timing of the announcement, there are already 102,692,615 common shares bought out by the buyer, which leaves the market with a potential spot cash injection for those previous lithium stock owners to move to new projects with similar future takeout potential.

Source: https://usanewsgroup.com/2023/10/18/the-lithium-race-to-power/

Article Source: 

USA News Group
http://USAnewsgroup.com 
[email protected]

DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Lithium South Development Corporation advertising and digital media from the company directly. There may be 3rd parties who may have shares of Lithium South Development Corporation, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Lithium South Development Corporation which were purchased as a part of a private placement. MIQ reserves the right to buy and sell, and will buy and sell shares of Lithium South Development Corporation at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. The contents of this advertisement were reviewed by Mr. William Feyerabend, a Consulting Geologist and Qualified Person as defined under National Instrument 43-101. Mr. Feyerabend approves of the scientific and technical disclosure pertaining to Lithium South contained within this advertisement. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

USA News Group is Source of all content listed above.  FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein.  The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM.  FNM is not liable for any investment decisions by its readers or subscribers.  FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  FNM was not compensated by any public company mentioned herein to disseminate this press release.

This release contains “forward-loking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

Media Contact Information:
FN Media Group, LLC
Media Contact e-mail:  
[email protected] 
U.S. Phone: +1(954)345-0611

View original content:https://www.prnewswire.co.uk/news-releases/latest-lithium-takeover-bid-sparks-speculation-on-more-ma-activity-to-come-302033710.html