Mr. Michael Kobler reports
AMERICAN LITHIUM TO REDUCE ROYALTY OBLIGATIONS FOR TLC PROJECT AND EXPAND HOLDINGS IN ESMERALDA LITHIUM DISTRICT IN NEVADA
American Lithium Corp. has reached an agreement with Nevada Alaska Mining Co. Inc., an arm's-length party, under which the company will buy back 1.5 per cent of the existing gross overriding royalty pertaining to the company's wholly owned TLC lithium claystone property near Tonopah, Nev.
Nevada Alaska currently holds a 2.5-per-cent gross overriding royalty on commercial production from the TLC property, and following completion of the buyback will continue to hold a 1-per-cent 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 $150,000 (U.S.) to Nevada Alaska, and will issue 843,750 common shares based upon a deemed exchange rate of $1.35 (Canadian) for $1 (U.S.) and a deemed price of $1.36 (Canadian) 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 arm's-length Nevada company (NevadaCo) which holds the rights to a series of lode mining claims totalling 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 continuing royalties or encumbrances.
In consideration for the acquisition of all of the outstanding share capital of NevadaCo, the company has agreed to issue four million common shares, at a deemed price of $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, Nev., 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.
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