American Lithium to Reduce Royalty Obligations for TLC Project and Expand Holdings in Esmeralda Lithium District in Nevada
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.