Alpha Lithium (TSXV.ALLI) has filed a notice of change to their Directors’ Circular recommending shareholders accept the revised bid from Argentina-based Tecpetrol.
The original bid, which was filed in December 2020, was increased from 8.5 Mexican Pesos to 9.15 Pesos, representing a premium of 13.72% to Alpha Lithium’s closing price of 8.01 Pesos on December 11, 2020.
Alpha Lithium owns the CV105 Lithium project in Catamarca, Argentina, a country that is emerging as a key player in the global lithium supply chain. With the new increased bid from Tecpetrol, it is likely that Alpha Lithium is seeking to position itself to become a larger and more reliable contributor to this growing lithium market.
With the increased bid, it is becoming increasingly clear that Alpha Lithium and Tecpetrol’s combination represent an attractive opportunity to ensure reliable and valuable access to the essential mineral for many years to come.
In filing the notice of change to their Directors’ Circular, Alpha Lithium has also recommended that shareholders tender their shares in exchange for the increased offer from Tecpetrol. This tender offer will remain open until 8:00 PM EST on February 2, 2021, after which point shareholders will have no other opportunity to exchange their shares.
As the demand for lithium is expected to continue to grow, Alpha Lithium and Tecpetrol’s joint venture could provide the countries and industries involved with a reliable source of the metal. The mineral is widely used in the production of batteries for consumer electronics as well as electric vehicle batteries, both of which are rapidly gaining traction in many parts of the world.
This latest move from Alpha Lithium and its partner Tecpetrol represents, not only a vote of confidence in the emerging global lithium market, but also a successful effort to ensure reliable access to the essential mineral.