Uranium One Signs Deal to Develop Lithium Deposit in Argentina

Uranium One Holding, a Rosatom company, has entered into an agreement with Alpha Lithium Corporation to set up a joint venture (JV) to develop the 27,500 hectares of Tolillar lithium deposit in Argentina.
 
Commenting on the partnership, Brad Nichol, Alpha’s President and CEO commented, “We are excited to enter into this partnership with Uranium One. Their proven ability to execute large-scale industrial projects and extensive global experience in operating mining and processing facilities will prove to be invaluable in ensuring the successful development and operation of the Tolillar project. Uranium One’s involvement in the lithium industry is a clear indication that lithium is critical to the future of the global economy and serves as an important vote of confidence in the work that Alpha Lithium has been undertaking in recent years.”
 
The agreement provides for the initial subscription for shares in Alpha One Lithium by Uranium One Holding for consideration of USD 30 million, which would result in Uranium One Holding and Alpha Lithium Corporation each holding 15 per cent and 85 per cent, respectively.
 
The main asset of Alpha One Lithium comprised 100 per cent stake in the Argentine project company Alpha Argentina, which owns the exploration and production rights for Tolillar lithium deposit.
 
Following completion of a bankable feasibility study on the project, Uranium One would have the option to invest an additional USD 185 million which would result in its shareholding in Alpha One Lithium increasing to 50 per cent.
 
Upon exercise of the option, Uranium One would be entitled to 100 per cent off-take of the project’s production.
 
“Lithium is an essential material for the provision of resources for the green economy of the future. The development of this line of business is strategically important for Rosatom. The project in Argentina will be implemented in accordance with the principles of sustainable development. We plan to develop the deposit, taking into account the interests of local communities, using innovative technologies that have minimal impact on the environment, supporting scientific and technical cooperation programs. We are currently evaluating other rare and important metal deposits,” said Andrey Shutov, President, Uranium One Group.
 
Meanwhile, the transaction was agreed as part of Uranium One’s business diversification strategy, which provides for the development of rare and rare-earth important metals associated with the supply of raw materials to high-tech industries.