American Lithium Corp. [LI-TSXV, LIACF-OTCQB, 5LA1-Frankfurt] said it has arranged to raise $20 million from a private placement financing with proceeds earmarked for lithium and uranium projects in the United States and Peru.
Under an agreement with a syndicate of agents, the company said it has launched a private placement of up to 7.54 million units priced at $2.65 per unit. Each unit will consist of one common share and one half of a common share purchase warrant. Each warrant will entitle the holder to purchase one share at an exercise price of $4 per share for 24 months after the closing date.
American Lithium said it has granted the agents an option to sell up to an additional 1.9 million units at the issue price. It said the green shoe option is exercisable until 48 hours prior to closing, to cover any over-allotments.
Proceeds will be used to fund exploration and development at the company’s Tonopah Lithium Project (TLC) project in Nevada, and Falchani (lithium) and Macusani (uranium) projects in Peru.
News of the private placement came after the close of trading on October 13, 2021, when American Lithium shares rose 4.3% or 12 cents to $2.89 on volume of 1.37 million. The shares are currently trading in a 52-week range of $4.21 and $1.04.
American Lithium was in the news recently when the company released positive lithium extraction results from its TLC) project. The company said it has achieved the highest lithium extraction results to date, reporting 97.4% extraction utilizing sulfuric acid leach on the Tonopah claystone mineralization.
The announcement sparked heavy trading in American Lithium shares, which jumped to $2.28.
American Lithium was also in the news recently when it reached a deal to acquire Plateau Energy Metals
The aim was to combine American Lithium’s TLC project with Plateau’s Falchani lithium project in Peru at a time of rapidly growing lithium demand in the context of an increasing focus on electric vehicles, energy storage and renewable energy generation.
The transaction also offers American Lithium shareholders exposure to Plateau’s Macusani project, which is believed to be the largest uranium deposit in Peru.
Amerian Lithium is working to develop the TLC lithium project which is located in the Esmeralda lithiuim district in Nevada and 3.5 hours south of the Tesla Motors Ltd. [TSLA-NASDAQ] Gigafactory. TLC is located in the same basinal environment as Albemarle Corp.’s [ALB-NYSE] Silver Peak lithium mine as well as several advancing deposits, including Cypress Development Corp.’s [CYP-TSXV] Clayton Valley project.
The company said metallurgical work on the TLC claystone mineralization continues to demonstrate its amenability to three process options, including leaching with sulfuric acid at 97.4% extraction, salt roasting followed by water leaching (initial 82% extraction) and leaching with hydrochloric acid (HCI) at 95.1% extraction.
Meanwhile, continued metallurgical work will aim to take each processing option through to the lithium carbonate and/or lithium hydroxide precipitation stage and to focus on optimizing all three processing options and related flow-sheet designs.
Thereafter the company will select the best option to enable a robust preliminary economic assessment (PEA) with economic benefits maximized and environmental impacts minimized.