American Lithium Closes Previously Announced $35 M Private Placement of Units
04 November 2021 - 12:33AM
American Lithium Corp. (“
American Lithium” or the
“
Company”) (TSX-V:LI) (OTCQB:LIACF)
(Frankfurt:5LA1) is pleased to announce that further to its news
releases dated October 13, 2021 and October 14, 2021, the Company
has completed its private placement of 13,208,000 units (the
“
Units”) at an offering price of $2.65 per Unit
for aggregate gross proceeds of $35,001,200 (the
“
Offering”).
Each Unit consists of one common share in the
capital of the Company (a “Share”) and one-half of
one common share purchase warrant (each whole warrant, a
“Warrant”). Each Warrant will entitle the holder
thereof to purchase one Share at an exercise price of $4.00 per
Share until November 3, 2023.
The gross proceeds of the Offering will be used
for exploration and development of the Company’s TLC Project,
Falchani Project and the Macusani Project, and for working capital
and general corporate purposes.
The Offering was co-led by Eight Capital,
Echelon Wealth Partners Inc. and TD Securities Inc., on behalf of a
syndicate of agents that also included Roth Canada, ULC
(collectively, the “Agents”). In consideration for
their services, the Agents received an aggregate cash commission of
$2,061,617.85 from the Company.
The securities issued in connection with the
Offering are subject to a statutory hold period expiring March 4,
2022.
The securities referred to in this news release
have not, nor will they be registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold
within the United States or to, or for the account or benefit of,
U.S. persons in the absence of U.S. registration or an applicable
exemption from the U.S. registration requirements. This release
does not constitute an offer for sale of securities in the United
States.
Andrew Bowering, Chairman and Director of the
Company, Simon Clarke, Chief Executive Officer and Director of the
Company and Philip Gibbs, Chief Financial Officer of the Company
participated in the Offering and acquired an aggregate of 415,000
Units. The purchases constitute “related party transactions” within
the meaning of Multilateral Instrument 61-101 – Protection of
Minority Security Holders in Special Transactions (“MI 61-101”).
The issuances are exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as they were a
distribution of securities for cash and the fair market value of
the Units issued to and the aggregate consideration paid by Mr.
Bowering, Mr. Clarke and Mr. Gibbs 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.
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 industry sectors in the TSX Venture Exchange
over the last year.
For more information, please contact the Company
atinfo@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
For further information, please contact:
American Lithium Corp.
Email: info@americanlithiumcorp.com
Website: www.americanlithiumcorp.com
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.
Forward-Looking Statements
Statements 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.
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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