American Lithium Reaches Agreement to Acquire Plateau Energy Metals and Consolidate Development-Stage Lithium Assets

VANCOUVER, British Columbia and TORONTO, Feb. 09, 2021 (GLOBE NEWSWIRE) -- American Lithium Corp. (TSXV:LI | OTCQB:LIACF | Frankfurt:5LA1) (“American Lithium”) and Plateau Energy Metals Inc. (TSXV:PLU | OCTQB:PLUUF) (“Plateau”) are pleased to announce that they have entered into a definitive arrangement agreement (the “Agreement”) to consolidate two significant and strategic undeveloped lithium assets in the Americas at a time of rapidly growing lithium demand in the context of increasing focus on electric vehicles, energy storage and renewable energy generation. It is expected that Plateau shareholders will hold approximately 21% of American Lithium’s shares on an outstanding undiluted basis upon completion of the Transaction (as defined below).

Transaction Highlights

Benefits to American Lithium Shareholders

• Establishes American Lithium’s position as a consolidator of lithium development assets in the Americas
• Substantially increases the lithium resource base combining American Lithium’s TLC lithium project (“TLC”) in Nevada and Plateau’s Falchani lithium project (“Falchani”) in Peru
• Adds additional growth potential to further explore and develop these district-scale lithium properties on a consolidated platform
• Exposure to the Macusani Uranium project (“Macusani”), believed to be the largest uranium deposit in Peru
• Complementary addition of key executives with significant technical expertise in lithium extraction and metallurgy
  

Benefits to Plateau Shareholders

• Immediate and attractive premium to Plateau shareholders of 84% on a spot basis and 72% on a VWAP20 (as defined below) basis as of market close on February 5, 2021
• Opportunity to participate in a leading lithium explorer and developer with a highly strategic asset located proximal to the Tesla Gigafactory in mining-friendly Nevada as the US looks to expedite domestic production of lithium as part of its “Critical Mineral” initiatives
• Both jurisdictional and project risk diversification with the potential for two major production centres
• Enhances liquidity, access to capital and marketing expertise with a broad market following, allowing for the upside of the growing lithium market to be better realized

American Lithium intends to implement a strategic approach to the uranium assets of Plateau, specifically Macusani, with the goal of maximizing the value of this asset for the benefit of shareholders of the combined entity following the closing of the transaction. The timing and exact approach to this asset will be determined following completion of the Transaction (as defined below).