American Lithium Announces Royalty Buyback at its TLC Lithium Project in Nevada
24 January 2023 - 11:00PM
American Lithium Corp. (“American Lithium” or the “Company”)
(TSX-V:LI | NASDAQ:AMLI | Frankfurt:5LA1) announces it has entered
into an agreement (the “Agreement”) with Nevada Alaska Mining Co.
Inc., an arms-length party, to buy back the remaining one percent
(1%) gross overriding royalty (the “Royalty”) on the Company’s
wholly owned TLC Lithium Project (“TLC”) located in the Esmerelda
lithium district northwest of Tonopah, Nevada.
Pursuant to the terms of the Agreement, American
Lithium will issue 950,000 common shares in the capital of the
Company (“Shares”) to Nevada Alaska Mining Co. Inc. The Shares will
be subject to a statutory hold period of four months and one day in
accordance with applicable securities laws. The acquisition of the
Royalty, and issuance of the Shares, remains subject to the
approval of the TSX Venture Exchange.
Simon Clarke, American Lithium CEO, stated, “we
are very pleased to have reached this agreement with the royalty
holder to buy back this valuable royalty, which also ensures that
the Company will control 100% of all concessions comprising TLC. As
TLC moves through development and into production, this transaction
should be highly accretive and will maximize Project value.
Removing this remaining royalty also enables us to present TLC as
wholly unencumbered in our maiden PEA which is expected to be
released in the next few days.”
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.
The TSX Venture 50 is a ranking of the top
performers in each of 5 industry sectors in the TSX Venture
Exchange over the last year.
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, the intended completion of the acquisition of the
Royalty, 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; 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 “Risk Factors” section of American Lithium’s Management’s
Discussion and Analysis filed on June 28, 2022, 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
ConcessionsThirty-two of the 169 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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