Mitrani Caballero, in conjunction with the Moscow office of Freshfields Bruckhaus Deringer LLP, advised Uranium One Holding N.V. (“U1”) in its joint venture with TSXV listed company Alpha Lithium Corporation (“Alpha”), to develop the Tolillar Project, a 27,500-hectare lithium deposit located in the Province of Salta, Argentina (the “Tolillar Project”).
According to the terms of the deal, entered into on November 29, 2021, U1 will invest US$30 million in the project in exchange for a 15% ownership stake in the joint venture company Alpha One Lithium (“Alpha One”), which will control the Tolillar Project. Also, upon completion of the Feasibility Study, U1 will have the option to acquire an additional 35% of Alpha One for a US$185 million investment.
The definitive agreements are subject to standard closing conditions, including approval by the TSX Venture Exchange. Closing of the transaction is expected to occur on January 31, 2022.
Uranium One is an international group of companies, part of TENEX (a subsidiary of ROSATOM), and one of the world’s largest uranium producers with a diverse portfolio of assets worldwide, including in Kazakhstan, Tanzania and Namibia. The company is developing new business areas, including biofuels and rare metals (lithium, etc.).
Andrey Shutov, President of Uranium One stated, “In alignment with our stated strategy of securing non-uranium mineral resources, Uranium One is very excited to work with the famous Alpha Lithium team to advance the Tolillar Project, located within the renowned Lithium Triangle, the world’s most prolific lithium region. This partnership agreement represents a scaled approach to expanding Uranium One’s lithium production, while allowing Uranium One and Alpha Lithium to collaborate on the development of Tolillar and implement efficient extraction technologies.”