American Lithium Corp. (“American Lithium” or the “Company”)
(TSX-V:LI | OTCQB:LIACF | Frankfurt:5LA1) is pleased to announce
that it has entered into a share purchase agreement, dated
September 7, 2021, with Big Smoky Holdings Corp. (“Big Smoky”) and
each of the shareholders of Big Smoky (the “Vendors”), pursuant to
which it will acquire all of the outstanding share capital of Big
Smoky. Big Smoky controls the Crescent Dunes Project (“Crescent
Dunes”), consisting of 3,886 acres of highly prospective
exploration land immediately north of, and contiguous with, the
Tonopah Lithium Claims (“TLC”) project, consolidating more of the
known shallow occurrences of TLC lithium claystone mineralization.
Acquisition Highlights:
- Crescent Dunes
comprises a large parcel of highly prospective exploration acreage
contiguous with the TLC project;
- Crescent Dunes
has similar geology to TLC with historical work including mapping,
inclined trenching and outcrop and auger sampling work yielding
highly anomalous mineralized claystone with up to 2,361 ppm
Li;
- The Company will
acquire full title to Crescent Dunes with no royalties or other
encumbrances though the acquisition of Big Smoky;
- The Company
intends to launch additional field work at Crescent Dunes,
including initial drilling, as soon as practicable during Fall
2021; and
- Following the
acquisition, total land holdings at TLC will be 11,410 acres.
Simon Clarke, CEO of American Lithium,
commented, “the Crescent Dunes acquisition adds further highly
prospective exploration acreage to the TLC Project, which will now
essentially cover the bulk of known shallow claystone geology in
our basin. The occurrence of a sequence of higher-grade
lithium-bearing claystones above 2,000 ppm Li at surface is very
encouraging, especially because at TLC such grades were only
encountered in drilling. We look forward to further exploration and
drill testing, on what will become TLC North, to build on the
encouraging recent historical results.”
Crescent Dunes Details & Historical
Results
Crescent Dunes comprises approximately 3,886
acres of highly prospective exploration land immediately north of
the TLC project border. Crescent Dunes has similar claystone
geology as TLC, but with outcropping lithium mineralization exposed
in an up-thrown block revealing a section through the mineralized
Tertiary-age Siebert Formation claystone. The project is largely
covered with recent alluvium and the prospective host claystone
stratigraphy has been mapped, sampled and traced at surface for
approximately 3 km (N-S) and approximately 2 km (E-W), and is
interpreted to be present in the shallow subsurface where covered
by alluvium on the entire project area.
Historical exploration work completed on behalf
of the vendor between 2019-2021 was recently reviewed and
summarized by Stantec Consulting Ltd. (“Stantec”) in an unpublished
Technical Report entitled: “Technical Report Crescent Dunes Lithium
Property, Nye County, Nevada, USA” with an effective date of June
17, 2021.
Exploration work including mapping, inclined
trenching and sampling work and auger sampling identified multiple
locations of highly anomalous mineralized claystone with up to
2,361 ppm Li. A 390’ (120 m) long inclined trench (Trench A) was
mapped, logged and sampled with various upper and lower claystone
lithologies present. A total of 56 samples were collected from the
weathered trench, representing an inclined cross section through
the claystone stratigraphy, with Li contents ranging from 239 ppm
Li to 2,361 ppm Li with an average of 800 ppm Li. A second trench
(Trench B) with abundant colluvium covered intervals was also
mapped and sampled over a length of 490’ (150 m). 14 samples were
collected with Li contents ranging from 121 to 2012 ppm Li,
averaging 405 ppm Li.
Overall, the highest lithium grades were sampled
from the basal portion of the Trench A section that is interpreted
to be equivalent to the high-grade lithium mineralized claystone at
TLC, but at, or near surface. A total of 84 auger samples along
reconnaissance lines at various orientations were also completed
across the project. The auger sampling results are range-based with
37 samples exceeding 300 ppm Li; 15 samples >500 ppm Li; and 5
samples >1,000 ppm Li with a maximum of 1482 ppm Li.
Geologically and geochemically, the Crescent
Dunes claystone mineralization is very similar to TLC claystone
mineralization including similar major and trace element enrichment
and visible organic carbon association with elevated Li contents.
The local geology is interpreted to represent an extension of TLC
geology, potentially with some shallower exposure of the TLC higher
grade claystone mineralization.
The Company reminds readers that exploration
work completed previously at Crescent Dunes is historical in
nature, but is being interpreted as indicative of project
prospectivity that warrants further exploration. The Company
intends to file appropriate notice permits to facilitate the first
exploration drilling on this prospective new ground as soon as
practicable with drilling expected to start in later fall 2021,
following permitting approvals.
Transaction Details
The Company has entered into a share purchase
agreement, dated September 7, 2021, with Big Smoky and the Vendors,
pursuant to which the Company proposes to acquire all of the
outstanding share capital of Big Smoky. Through its wholly-owned
subsidiary, Big Smoky controls the Crescent Dunes Project.
Pursuant to the share purchase agreement, the
Company has agreed to issue 2,500,000 common shares to the Vendors.
The Company is at arms-length from Big Smoky and each of the
Vendors. No commissions or finders’ fees are payable in connection
with the acquisition of Big Smoky, and the acquisition remains
subject to the approval of the TSX Venture Exchange.
Qualified Person
Mr. Ted O’Connor, P.Geo., a Director of American
Lithium, and a Qualified Person as defined by National Instrument
43-101 Standards of Disclosure for Mineral Projects, has reviewed
and approved the scientific and technical geological information
contained in this news release.
About American
Lithium
American Lithium, a member of the TSX Venture
50, is actively engaged in the acquisition, exploration and
development of lithium projects within mining-friendly
jurisdictions throughout the Americas. The Company is currently
focused on enabling the shift to the new energy paradigm through
the continued exploration and development of its strategically
located TLC lithium claystone project in the richly mineralized
Esmeralda lithium district in Nevada as well as continuing to
advance its Falchani lithium and Macusani uranium development
projects in southeastern Peru. Both Falchani and Macusani have been
through preliminary economic assessments, exhibit strong additional
exploration potential and are situated near significant
infrastructure.
The TSX Venture 50 is a ranking of the top
performers in each of 5 industry sectors in the TSX Venture
Exchange over the last year.
For more information, please contact the Company
at info@americanlithiumcorp.com or visit our website
at www.americanlithiumcorp.com for project update videos and
related background information.
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On behalf of the Board of Directors of
American Lithium Corp.
“Simon Clarke”
CEO & Director
Tel: 604 428 6128
For further information, please contact:
American Lithium Corp. |
|
Email: info@americanlithiumcorp.com |
|
Website: www.americanlithiumcorp.com |
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Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
Cautionary Statement Regarding Forward
Looking InformationThis news release contains certain
forward-looking information and forward-looking statements
(collectively “forward-looking statements”) within the meaning of
applicable securities legislation. All statements, other than
statements of historical fact, are forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements regarding the plans, objectives and
advancement of the TLC, Falchani, Macusani and Crescent Dune
Projects (the “Projects”), exploration drilling plans, in-fill and
expansion drilling plans, results of exploration and development
plans, expansion of resources and testing of new deposits,
environmental and social community permitting, and any other
statements regarding the business plans, expectations and
objectives of American Lithium. Forward-looking statements are
frequently identified by such words as "may", "will", "plan",
"expect", "anticipate", "estimate", "intend", “indicate”,
“scheduled”, “target”, “goal”, “potential”, “subject”, “efforts”,
“option” and similar words, or the negative connotations thereof,
referring to future events and results. Forward-looking statements
are based on the current opinions and expectations of management
are not, and cannot be, a guarantee of future results or events.
Although American Lithium believes that the current opinions and
expectations reflected in such forward-looking statements are
reasonable based on information available at the time, undue
reliance should not be placed on forward-looking statements since
American Lithium can provide no assurance that such opinions and
expectations will prove to be correct. All forward-looking
statements are inherently uncertain and subject to a variety of
assumptions, risks and uncertainties, including risks,
uncertainties and assumptions related to: American Lithium’s
ability to achieve its stated goals, including the anticipated
benefits of the acquisition of Plateau Energy Metals Inc.
(“Plateau”); the estimated costs associated with the advancement of
the Projects; risks and uncertainties relating to the COVID-19
pandemic and the extent and manner to which measures taken by
governments and their agencies, American Lithium or others to
attempt to reduce the spread of COVID-19 could affect American
Lithium, which could have a material adverse impact on many aspects
of American Lithium’s businesses including but not limited to: the
ability to access mineral properties for indeterminate amounts of
time, the health of the employees or consultants resulting in
delays or diminished capacity, social or political instability in
Peru which in turn could impact American Lithium’s ability to
maintain the continuity of its business operating requirements, may
result in the reduced availability or failures of various local
administration and critical infrastructure, reduced demand for the
American Lithium’s potential products, availability of materials,
global travel restrictions, and the availability of insurance and
the associated costs; risks related to the certainty of title to
the properties of American Lithium, including the status of the
“Precautionary Measures” filed by American Lithium’s subsidiary
Macusani Yellowcake S.A.C. (“Macusani”), the outcome of the
administrative process, the judicial process, and any and all
future remedies pursued by American Lithium and its subsidiary
Macusani to resolve the title for 32 of its concessions; risks
regarding the ongoing Ontario Securities Commission regulatory
proceedings; the ongoing ability to work cooperatively with
stakeholders, including but not limited to local communities and
all levels of government; the potential for delays in exploration
or development activities due to the COVID-19 pandemic; the
interpretation of drill results, the geology, grade and continuity
of mineral deposits; the possibility that any future exploration,
development or mining results will not be consistent with our
expectations; risks that permits will not be obtained as planned or
delays in obtaining permits; mining and development risks,
including risks related to accidents, equipment breakdowns, labour
disputes (including work stoppages, strikes and loss of personnel)
or other unanticipated difficulties with or interruptions in
exploration and development; risks related to commodity price and
foreign exchange rate fluctuations; risks related to foreign
operations; the cyclical nature of the industry in which American
Lithium operates; risks related to failure to obtain adequate
financing on a timely basis and on acceptable terms or delays in
obtaining governmental approvals; risks related to environmental
regulation and liability; political and regulatory risks associated
with mining and exploration; risks related to the uncertain global
economic environment and the effects upon the global market
generally, and due to the COVID-19 pandemic measures taken to
reduce the spread of COVID-19, any of which could continue to
negatively affect global financial markets, including the trading
price of American Lithium’s shares and could negatively affect
American Lithium’s ability to raise capital and may also result in
additional and unknown risks or liabilities to American Lithium.
Other risks and uncertainties related to prospects, properties and
business strategy of American Lithium are identified in the “Risks
and Uncertainties” section of Plateau’s Management’s Discussion and
Analysis filed on January 19, 2021, in the “Risk Factors” section
of American Lithium’s Management’s Discussion and Analysis filed on
January 29, 2021, and in recent securities filings available at
www.sedar.com. Actual events or results may differ materially from
those projected in the forward-looking statements. American Lithium
undertakes no obligation to update forward-looking statements
except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements.
Cautionary Note Regarding Macusani
Concessions Thirty-two of the 151 concessions held by
American Lithium’s subsidiary Macusani, are currently subject to
Administrative and Judicial processes (together, the “Processes”)
in Peru to overturn resolutions issued by INGEMMET and the Mining
Council of MINEM in February 2019 and July 2019, respectively,
which declared Macusani’s title to 32 of the concessions invalid
due to late receipt of the annual validity payments. In November
2019, Macusani applied for injunctive relief on 32 concessions in a
Court in Lima, Peru and was successful in obtaining such an
injunction on 17 of the concessions including three of the four
concessions included in the Macusani Uranium Project PEA. The grant
of the Precautionary Measure (Medida Cautelar) has restored the
title, rights and validity of those 17 concessions to Macusani
until a final decision is obtained at the last stage of the
judicial process. A Precautionary Measure application was made at
the same time for the remaining 15 concessions and was ultimately
granted by a Court in Lima, Peru on March 2, 2021 which has also
restored the title, rights and validity of those 15 remaining
concessions to Macusani, with the result being that all 32
concessions are now protected by Precautionary Measure (Medida
Cautelar) until a final decision on this matter is obtained at the
last stage of the judicial process. A final date for the last stage
of the judicial process has not yet been set. If American Lithium’s
subsidiary Macusani does not obtain a successful resolution of the
Processes, its title to the concessions could be revoked.
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