American Lithium Corp. (TSXV: LI) (OTCQB: LIACF)
(Frankfurt: 5LA1) (“
American Lithium” or
the “
Company”), a leader in the acquisition,
exploration and development of lithium projects, announces that it
has completed a non-brokered private placement of 7,518,750 units
(each, a “
Unit”) at a price of $2.00 per Unit for
gross proceeds of $15,037,500.
Each Unit consists of one common share and
one-half of one common share purchase warrant (each whole warrant a
“Warrant”). Each Warrant will entitle the holder
to purchase one additional common share in the capital of the
Company (a “Warrant Share”) at a price of $3.00
per Warrant Share until April 29, 2024.
Proceeds of the placement will be used to
continue development of the Company’s wholly owned TLC project in
Nevada and for general working capital purposes. Subject to
completion of the acquisition of Plateau Energy Metals Inc., which
is expected to close within the next two weeks, a portion of the
proceeds may also be utilized for the ongoing development of the
Falchani and Macusani projects in Peru.
The Company has paid aggregate cash finders’
fees totalling $590,250.00 and has issued 295,125 non-transferrable
Warrants to certain eligible finders in consideration for the
introduction of subscribers to the placement.
All securities issued in connection with the
placement are subject to a four-month-and-one-day statutory hold
period expiring on August 30, 2021.
Andrew Bowering, CFO & Director of the
Company participated in the private placement and acquired 250,000
Units. The purchase constitutes a “related party transaction”
within the meaning of Multilateral Instrument 61-101
– Protection of Minority Security Holders in Special
Transactions (“MI 61-101”). The issuance is
exempt from the formal valuation and minority shareholder approval
requirements of MI 61-101 as it was a distribution of securities
for cash and the fair market value of the Units issued to and the
consideration paid by Mr. Bowering did not exceed 25% of the
Company’s market capitalization.
The Company did not file a material change
report more than 21 days before the expected closing of the
placement because the details of the participation therein by the
related party of the Company were not settled until shortly prior
to the closing of the placement and the Company wished to close on
an expedited basis for business reasons.
Appointment of Simon Clarke as
CEOAmerican Lithium is also pleased to announce the
appointment of Simon Clarke as CEO of the Company with immediate
effect. Simon Clarke will also continue to be a director of the
Company.
Simon Clarke brings over 25 years experience in
building companies and implementing successful capital markets and
growth strategies focused in mining, energy, and energy technology.
Most recently, Mr. Clarke was founder, CEO, and director of M2
Cobalt Corp. (cobalt / copper exploration in East Africa) and
coordinated the sale of that company to Jervois Mining Ltd. in June
2019. He remained with Jervois post acquisition initially as a
Director and then as EGM Corporate Affairs.
Mr Clarke brings significant experience and
knowledge of the battery metals space and, in addition to
day-to-day management of company wide operations, including in East
Africa, his roles with M2 Cobalt and subsequently Jervois Mining
involved managing government and stakeholder initiatives relating
to the supply of battery metals in a number of jurisdictions. In
particular, he has first-hand experience with the critical
minerals’ initiatives in the United States and the urgent need to
develop domestic / “friendly” sources of the supply of critical
minerals, including battery grade lithium.
Mr Clarke was also a co-founder, executive and
director of Osum Oil Sands Corp. (“Osum”) and, together with
current American Lithium CEO, Michael Kobler, helped build a
company valued in excess of US$1 billion at the peak of oil sands
valuations. Osum built production to 20,000 bopd and was recently
acquired by Watreous Energy Fund in a series of transactions
valuing the Company at approximately $400 million, with the final
phase due to close shortly, Mr Clarke remained a Board Observer at
Osum until the conclusion of the main transaction. He holds an LLB
and Diploma in Legal Practice from Aberdeen University,
Scotland.
Andrew Bowering, CFO and Director of American
Lithium stated, “We are very pleased to welcome Simon Clarke as CEO
of American Lithium, he has been a key part of our team since
joining as a Director in June of last year and we believe he is the
right person to guide the Company through the next stage of its
evolution. At the same time, I want to personally acknowledge Mike
Kobler’s contributions in building American Lithium to what it is
today and thank him for all his efforts as a founder and the CEO. I
am pleased to report that he will remain a key part of the American
Lithium team as General Manager of our US operations.”
About American LithiumAmerican
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 lithium 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.
Please watch our corporate video
at https://www.americanlithiumcorp.com and review our
informative short project update videos and related background
information
at https://www.americanlithiumcorp.com/projects/tlc-nevada/.
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.
Statements in this release that are forward-looking information,
include, without limitation, use of proceeds from the placement;
and anticipated completion date of the acquisition of Plateau
Energy Metals Inc. 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
Annual Information Form and 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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