American Lithium closes $15 Million Private Placement – Simon Clarke Appointed New CEO

VANCOUVER, British Columbia, April 29, 2021 (GLOBE NEWSWIRE) -- American Lithium Corp. (TSXV: LI) (OTCQB: LIACF) (Frankfurt: 5LA1) (“American Lithium” or the “Company”), a leader in the acquisition, exploration and development of lithium projects, announces that it has completed a non-brokered private placement of 7,518,750 units (each, a “Unit”) at a price of $2.00 per Unit for gross proceeds of $15,037,500. 

Each Unit consists of one common share and one-half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant will entitle the holder to purchase one additional common share in the capital of the Company (a “Warrant Share”) at a price of $3.00 per Warrant Share until April 29, 2024.

Proceeds of the placement will be used to continue development of the Company’s wholly owned TLC project in Nevada and for general working capital purposes. Subject to completion of the acquisition of Plateau Energy Metals Inc., which is expected to close within the next two weeks, a portion of the proceeds may also be utilized for the ongoing development of the Falchani and Macusani projects in Peru.

The Company has paid aggregate cash finders’ fees totalling $590,250.00 and has issued 295,125 non-transferrable Warrants to certain eligible finders in consideration for the introduction of subscribers to the placement.

All securities issued in connection with the placement are subject to a four-month-and-one-day statutory hold period expiring on August 30, 2021. 

Andrew Bowering, CFO & Director of the Company participated in the private placement and acquired 250,000 Units. The purchase constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuance is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as it was a distribution of securities for cash and the fair market value of the Units issued to and the consideration paid by Mr. Bowering 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.