VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 15, 2016) - American Lithium Corp. (TSX VENTURE:LI) (OTCQB:LIACF) (FRANKFURT:5LA) (WKN:A2AHEL) ("American Lithium" or the "Company"), is pleased to announce that it will acquire 41,860 acres of prospective lithium brine and clay exploration land, located in Clayton Valley, Nevada.
Clayton Valley Land Acquisition
This new acreage totals over 41,860 acres in three separate property packages, all of which is deemed prospective for lithium brines and/or lithium clay potential. This new acreage compliments the Company's current land holding of 1,078 net acres in Clayton Valley, and the Company's highly prospective 18,552 acre land holdings in Fish Lake Nevada.
Mike Kobler, American Lithium's Chief Operating Officer, commented: "We are delighted with this singular largest acquisition of lithium claims in the Clayton Valley in recent years. Limited by geographical factors, with this acquisition, all of the prospective land within this closed sedimentary basin has been fully staked and registered by several major landholders. We look forward to taking advantage of the exponentially growing lithium market by offering our shareholders access to the largest, unencumbered and highly prospective exploratory project in the heart of North America's only established lithium producing basin."
In consideration for the Clayton Valley claim blocks, the Company will issue 11,500,000 common shares on closing (the "Consideration Shares"). Upon issuance, the Consideration Shares will be subject to escrow and will be released quarterly in equal tranches commencing on February 1st, 2017 and extending through to February 1st, 2018. Transfer or resale of the Consideration Shares will be prohibited during such time as they are subject to escrow.
The vendors of the claim blocks will also be eligible to receive a further 4,000,000 bonus shares, contingent on the completion of certain milestones in the development of the Company and the claim blocks. These milestones include the Company having completed further debt or equity financings for proceeds of not less than $10,000,000, the Company reaching a market capitalization of $150,000,000, the Company having received a resource estimate demonstrating 500,000 tonnes of lithium within the claim blocks, and the Company having completed a preliminary economic assessment on the properties comprising the claim blocks.
Completion of the acquisition remains subject to a number of conditions, including the negotiation of definitive documentation, the completion of a $3,000,000 financing, the approval of the TSX Venture Exchange and such other closing conditions as are customary in transactions of this nature. There can be no assurance that such conditions will be satisfied and that the transaction will be completed as disclosed.
Michael Collins, P.Geo. is the Company's designated Qualified Person within the meaning of National Instrument 43-101, and has reviewed and approved the technical information contained in this news release.
ABOUT American Lithium Corp.
American Lithium Corp. is actively engaged in the acquisition, exploration and development of lithium deposits within mining-friendly jurisdictions throughout the Americas. American Lithium holds options to acquire Nevada lithium brine claims totaling 22,332 acres (9,038 ha), including 18,552 contiguous acres (7,508 ha) in Fish Lake Valley, Esmeralda County; 2,240 acre (907 ha) San Emidio Project in Washoe County; and the 1,540 acre (623 ha) Clayton-Valley-1 Project. The Company's Fish Lake Valley lithium brine properties are located approximately 38 kilometers from Albemarle's Silver Peak, the largest lithium operation in the U.S. American Lithium is listed on the TSXV under the trading symbol "Li". For further information, please visit the Company's website at www.americanlithiumcorp.com or call 1-604-689-7422.
On behalf of the Board,
American Lithium Corp.
Michael Kobler, Executive Director, COO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this release that are forward-looking information are subject to various risks and uncertainties concerning the specific factors disclosed here. Information provided in this document is necessarily summarized and may not contain all available material information. All such forward-looking information and statements are based on certain assumptions and analyses made by American Lithium management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading "Risks Factors" in American Lithium's most recently filed MD&A. The Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.