American Lithium to Reduce Royalty Obligations for TLC Project and Expand Holdings in Esmeralda Lithium District in Nevada
July 10 2020 - 9:13AM
American Lithium Corp. (TSXV: LI) (OTCQB: LIACF)
(Frankfurt: 5LA1) (“
American Lithium” or
the “
Company”) a leading lithium exploration and
development company is pleased to announce that it has reached an
agreement with Nevada Alaska Mining Co., Inc. (“
Nevada
Alaska”), an arms-length party, under which the Company
will buyback (the “
Buyback”) one-and-one-half
percent (1.5%) of the existing gross overriding royalty pertaining
to the Company’s wholly owned TLC Lithium Claystone property near
Tonopah, Nevada (“
TLC Property”).
Nevada Alaska currently holds a two-and-one-half
percent (2.5%) gross overriding royalty on commercial production
from the TLC Property, and following completion of the Buyback will
continue to hold a one percent (1.0%) royalty.
Michael Kobler, Chief Executive Officer of
American Lithium, commented: “Reducing the royalty obligations at
TLC is a significant step forward as we look to further advance the
property and ultimately assess economic viability.”
Under the terms of the Buyback, the Company will
complete a cash payment of US$150,000 to Nevada Alaska, and will
issue 843,750 common shares (the “Buyback Shares”)
based upon a deemed exchange rate of Cdn$1.35 for US$1.00 and a
deemed price of Cdn$1.36 per share. Upon issuance, the
Buyback Shares will be subject to a four-month-and-one-day
statutory hold period in accordance with applicable securities
laws. Completion of the Buyback remains subject to the approval of
the TSX Venture Exchange.
The Company also announces that it has reached
an agreement to acquire all of the outstanding share capital of an
arms-length Nevada company (“NevadaCo”) which
holds the rights to a series of lode mining claims totaling
approximately 2,000 acres contiguous to and north and northwest of
the TLC property. The claims are highly prospective for lithium
claystone, based on projections from recent drilling work conducted
by the Company on the TLC Property, and surface sampling of an
outcrop to the north of the property. NevadaCo holds all rights to
the claims, and they are not subject to any ongoing royalties or
encumbrances.
In consideration for the acquisition of all of
the outstanding share capital of NevadaCo, the Company has agreed
to issue 4,000,000 common shares, at a deemed price of Cdn$1.36 per
share, to the existing shareholders of NevadaCo. Completion of the
acquisition of NevadaCo remains subject to the approval of the TSX
Venture Exchange.
About the TLC Property
The TLC sedimentary lithium discovery is an
exploration and development project located 12 kilometres northwest
of Tonopah, Nevada, and easily accessible by paved highway. Work to
date has identified a 5.3 million tonne measured and indicated
lithium carbonate equivalent resource, with an additional 1.7
million tonnes inferred, placing the Company’s resource amongst a
handful of potential lithium deposits in Western North America
capable of development. TLC is near-surface, relatively flat-lying
and a free digging lithium sedimentary deposit that the Company
expects to advance through an early stage economic study in 2020.
Just south of the Crescent Dunes solar energy plant, the
project is favourably located for future production given the
immediate access to some of the cheapest electricity in Nevada.
About American Lithium
Corp.American Lithium is actively engaged in the
acquisition, exploration and development of lithium deposits within
mining-friendly jurisdictions throughout the Americas. The company
is currently exploring and developing the TLC project located in
the highly prospective Esmeralda lithium district in Nevada. TLC is
close to infrastructure, 3.5 hours south of the Tesla Gigafactory,
and in the same basinal environment as Albemarle's Silver Peak
lithium mine and several advancing deposits and resources,
including Ioneer Ltd.'s (formerly Global Geoscience) Rhyolite Ridge
and Cypress Development Corp.'s Clayton Valley project.
For more information, please contact the Company
at info@americanlithiumcorp.com or visit our website at
www.americanlithiumcorp.com. Follow us
on Facebook, Twitter and LinkedIn.
On behalf of the Board,
American Lithium Corp.Michael Kobler, Chief
Executive Officer
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-looking
statementsStatements in this release that are
forward-looking information are subject to various risks and
uncertainties concerning the specific factors disclosed here.
Information provided in this release is necessarily summarized and
may not contain all available material information. All such
forward-looking information and statements are based on certain
assumptions and analyses made by American Lithium management in
light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. These statements, however, are subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking information or statements.
Important factors that could cause actual results to differ from
these forward-looking statements include those described under the
heading “Risks Factors” in American Lithium's most recently filed
MD&A. The Company does not intend, and expressly
disclaims any obligation to, update or revise the forward-looking
information contained in this news release, except as required by
law. Readers are cautioned not to place undue reliance on
forward-looking information or statements.
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