American Lithium Announces Financial and Operating Results for the Period Ended May 31, 2022
August 02 2022 - 7:00AM
American Lithium Corp. (“American Lithium” or the “Company”)
(TSX-V:LI | OTCQB:LIACF | Frankfurt:5LA1) is pleased to report its
operating and financial results for the three month period ending
May 31, 2022. Unless otherwise stated, all amounts presented are in
Canadian dollars.
“Q1 of the Company’s financial year was
extremely busy with the ramp up in drilling and the launch of the
final phase of work needed to complete the maiden PEA at our TLC
Project in Nevada (“TLC”),” stated Simon Clarke, CEO of American
Lithium.
“Additionally, we have generated good momentum
on all our projects in the last couple of months. In particular,
pre-feasibility work is underway at Falchani and process work has
validated Sulfate of Potash (“SOP”) as a key strategic by-product.
At Macusani, field work continues to identify additional uranium
anomalies and drill targets and at TLC the Company reported its
best drill results to date. We anticipate a number of milestones
this quarter and look forward to keeping you updated on
development.”
Highlights During the
Quarter
- Launch of final phase of
PEA compilation at TLC - appointment of DRA Global as lead
engineer to finalize the TLC PEA, along with Stantec Consulting and
ANSTO Minerals, Australia who have deep collective expertise in
lithium processing, resource calculation and mine / project design
and construction.
- Acquisition of water rights
for TLC - agreement to acquire 431 acres of privately held
agricultural lands near TLC, along with the accompanying 1,468
acre-feet of water rights for consideration of US$3.125 million.
This brings the total water rights owned by the Company to
approximately 2,500 acre-feet, which is expected to provide
sufficient water for at least the initial phases of future
production at TLC.
Subsequent Developments
- Drilling encounters best
results to date at TLC - initial 5 diamond drill holes
intersected lithium mineralization with higher grades and
consistently thicker mineralization than the existing TLC resource.
Program’s goal is focused on expanding and locating higher grade
opportunities within the current TLC resource.
- Pre-Feasibility work at
Falchani - commencement of environmental work required for
a pre-feasibility study on the Falchani Project, with the
initiation of an Environmental Impact Assessment with SRK Peru.
This process will run parallel with work to update the existing PEA
on Falchani and will also involve work in the field in and around
Falchani.
- Validation of SOP as
strategic by-product at Falchani - successful
precipitation of high purity, fertilizer-quality SOP from the
Company’s Falchani Project. This is strategically important given
Peru’s large dependence on importing fertilizers.
- Acquisition of additional
concessions in Peru - acquired additional highly
prospective mining concessions covering approximately 14,243
hectares in Southern Peru in proximity to its existing projects for
total consideration of US$400,000 and 2,500,000 common shares of
the Company.
- New Board and Management
Appointees - appointment of Ms. Claudia Tornquist to the
Board of Directors, and the transitioning of Ted O’Connor from
director to Executive Vice President.
- Public Relations and
Marketing Initiatives - entered into agreements relating
to public relations and marketing activities with Vorticom Inc.
(New York) and Crux Investor, (London, UK).
Selected Financial DataThe
following selected financial data is summarized from the Company’s
consolidated financial statements and related notes thereto (the
“Financial Statements”) for the three months ended May 31, 2022. A
copy of the Financial Statements and MD&A is available at
www.americanlithiumcorp.comon SEDAR at www.sedar.com.
|
Three months ended May 31, 2022 |
Three months endedMay 31,
2021 |
Loss and comprehensive loss |
$8,992,780 |
$3,094,582 |
Loss per share - basic and diluted |
$0.04 |
$0.02 |
|
As at May 31, 2022 |
Year EndFebruary 28, 2022 |
Cash |
$53,351,716 |
$55,855,718 |
Total assets |
$195.5 million |
$193.5 million |
Total current liabilities |
$2,378,871 |
$1,863,445 |
Total liabilities |
$3,207,677 |
$2,691,682 |
Total shareholders’ equity |
$187.4 million |
$190.8 million |
About American
LithiumAmerican Lithium, a member of the TSX Venture 50,
is actively engaged in the development of large-scale 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 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-stage projects in southeastern Peru. Both Falchani and
Macusani have been through robust preliminary economic assessments,
exhibit strong significant expansion potential and enjoy strong
community support. Pre-feasibility work has now commenced at
Falchani.
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.
Follow us
on Facebook, Twitter and LinkedIn.
On behalf of the Board of Directors of
American Lithium Corp.
“Simon Clarke”
CEO & Director
Tel: 604 428 6128
Neither the 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 ability to appeal the
judicial ruling, 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; 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; the judicial appeal process in Peru, 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.
The favourable judge’s ruling confirming title to all 32
concessions from November 3, 2021 represents the final stage of the
current judicial process. However, this ruling has recently been
appealed by MINEM and INGEMMET. American Lithium has no assurance
that the outcome of these appeals will be in the Company’s
favour.
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