Tecpetrol Acquires 54% Of Alpha Lithium, Extends Tender Offer

Tecpetrol has seen success in its attempt to acquire Alpha Lithium (NEO: ALLI). The fund, whom is focused on investing in the global energy transition, revealed late last night that it has successfully acquired a majority stake in the lithium explorer.

Tecpetrol, as of October 20, has acquired 102.7 million shares of Alpha Lithium via a tender offer. That offer, which has now been extended through to October 31, saw the company offer $1.48 per share of Alpha Lithium. The fund elected to extended the offer by a period of ten days to enable any remaining minority shareholders to tender to the offer.

Those who have already tendered shares are slated to receive funds for their shares in three days time as per the company.

Following the extension period, Tecpetrol intends to conduct an acquisition transaction that will see Alpha fully taken private and all of the unowned shares acquired, although a specific timeline for this was not provided.

The successful tender at $1.48 per share follows a prior offer that was rejected by the company at a price of $1.24. Following the increase in late September, the board of Alpha Lithium moved to recommend the deal, which followed a major shareholder also endorsing the transaction.

Alpha Lithium is the sole owner of the Tolillar Salar in Argentina, while also owning claims covering 5,000 hectares in the Salar Del hombre Muerto. The Tolillar project, which covers 27,500 hectares, has seen 24 exploration wells drilled.

The flagship project boasts 2.1 million indicates tonnes of lithium carbonate equivalent, and 1.2 million inferred tonnes of LCE, at lithium grades of 350 mg/L, with 68% of the property said to be unexplored. Prior to the company being acquired, it was working towards constructing a pilot plant at the project.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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