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VANCOUVER, British Columbia, July 10, 2020 (GLOBE NEWSWIRE) -- 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.
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.
Statements 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.