American Lithium on dispute over Peruvian concessions
American Lithium Corp. [LI-TSXV, LIACF-OTCQB, 5LA1-Frankfurt] has released information confirming appeals of a judicial ruling in favour of the companys’ Peruvian subsidiary Macusani Yellowcake SAC, in relation to title to 32 disputed concessions out of its 151 concessions in Peru.
These are concessions that American Lithium acquired via its recent acquisition of Plateau Energy Metals Inc. [PLU-TSXV, PLUUF-OTCQB]. That agreement was designed to combine American Lithium’s TLC lithium project in Nevada with Plateau’s Falchani and Macusani 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.
Macusani project, which is believed to be the largest uranium deposit in Peru. Both Falchani and Macusani have been through preliminary economic assessments, exhibit strong additional exploration potential and are situated near significant infrastructure.
In a press release on November 2, 2021, American Lithium said it had been made aware that the judicial ruling in relation to title to the 32 disputed concessions on the Falchani and Macusani projects has been issued in favour of Macusani Yellowcake. It said the ruling restores full title to the concessions.
However, on Friday, American Lithium said appeals have been launched by INGEMMET (Peruvian Institute of Mines and Metallurgy) and its parent ministry, MINEM (Ministry of Mines and Energy).
“No additional details are currently available on what aspects of the ruling are being appealed,” the company said in a press release.
“While it is standard practise for the legal departments of regulatory bodies in Peru to appeal rulings such as this, the company is confident that, given the strength of judgements presented in the November 3, 2021 ruling, the appeals will not be successful,” said American Lithium CEO Simon Clarke.
“The ruling is a major step forward in this process and provides confidence that commons sense will prevail,” he said. Meanwhile, Clarke said the company will push ahead with the mobilization of drill rigs to commence the next phase of development and exploration drilling around the Falchani and Macusani projects.”
Prior to being acquired by American Lithium, Plateau Energy had been working to position itself to be a big player in both the lithium and uranium sectors.
It hoped to achieve that goal by developing its Falchani lithium and Macusani uranium projects in southeastern Peru, where the company has previously said it held 100% control of mineral concessions covering 93,000 hectares (930 square kilometres). The Falchani project is located within a huge and largely unexplored tenement package covering 910 square kilometres on the Macusani Plateau.
Plateau discovered uranium on the Macusani property in 2005 and lithium later on in 2014 and 2015, prompting a decision to change the company’s name from Plateau Uranium to Plateau Energy.
On November 25, 2021, American Lithium shares closed at $5.80. The shares were previously trading in a 52-week range of $6.25 and $1.08.