American Lithium Corp. (“
American Lithium” or the
“
Company”) (TSX-V:LI | OTCQB:LIACF |
Frankfurt:5LA1) is pleased to report its operating and financial
results for the three month period ending August 31, 2022. Unless
otherwise stated, all amounts presented are in Canadian dollars.
“We made good progress across all projects
during the quarter,” stated Simon Clarke, CEO of American Lithium.
“In Peru we were pleased to be able to commence drilling again at
and around our Falchani Deposit for the first time since before
COVID 19. We are advancing well with initial assays anticipated
shortly. We have also made good progress at Australian Nuclear
Science and Technology Organisation (“ANSTO”) Minerals Business
Unit laboratories in Sydney, Australia where we continue to refine
the Falchani flow sheet to produce both sulfate of potash (“SOP”)
and Cesium as economically important and strategic by-products. In
addition, we continue to refine the Macusani uranium flow sheet for
pre concentration and even higher extraction rates.
"In Nevada, the Company started to receive first
assays with positive drill results from its 2022 drill program,
including the best intersections and grades recoded to date at TLC
and this momentum continued to build post quarter end. Initial
drill results from this program have been incorporated into the
existing TLC Resource and an updated Mine Plan which are being
included in the Company’s maiden PEA for TLC, currently being
finalized with leading engineering firm DRA Global.”
Highlights During the
Quarter:
- Launching of
Pre-Feasibility Work at Falchani – commencement of
Environmental Impact Assessment (“EIA”) with SRK Peru which will
run in parallel with updates to the existing PEA.
- EIA Drilling at Falchani
– commencement of hydrological and core drilling at
Falchani.
- Validation of SOP as
strategic by-product at Falchani - successful
precipitation of high purity, fertilizer-quality SOP, strategically
important because of Peru’s large dependence on imported
fertilizers.
- Appointment of DRA Global
and Stantec to update Falchani PEA - to expand /
reclassify resource, bring in SOP and cesium by-products and update
lithium carbonate pricing.
- Acquisition of additional
concessions in Peru - acquired additional highly
prospective mining concessions covering approximately 14,243
hectares in Southern Peru, in close proximity to its existing
projects, further broadening the Company’s existing asset base and
operations.
- Positive drill results at
TLC - initial diamond drill results with best results to
date including up to 2900 ppm lithium and averaging 1,550 ppm Li
over 50.3 metres in hole TLC-2206C.
- Board and Senior Management
Appointments – addition of Claudia Tornquist to the Board
of Directors as an independent member /chair of audit Committee and
Ted O’Connor transitioning from Director to Executive Vice
President Exploration and Development.
- AGM Results –
overwhelming support for the election of board members, adoption of
new omnibus incentive plan along with the appointment of Ernst
& Young as auditor.
Subsequent Events
- Board
Appointment – addition of Carsten Korch to the Board of
Directors as an independent member based in Peru.
Market Awareness Program
As announced on March 23, 2021, as part of its
ongoing strategy to continue to raise its profile in the United
States and to generate a greater following among United States
investors, the Company entered into an agreement (the
“Agreement”) with Promethean Marketing Inc., of
Annapolis, Maryland in the United States
(“Promethean”) pursuant to which Promethean
can provide marketing services including content creation and
distribution and market awareness campaigns.
Under the Agreement, the launch of market
awareness campaigns is dependent upon market conditions,
developments in the Company and available financial resources with
timing and budgets to be agreed in advance. The Company has now
elected to launch an initial 6-month program with a US$500,000
budget to build awareness in US markets as to the progress and
status of its TLC Project as well as the large-scale potential of
its Peruvian Projects. This timing also aligns with recent
developments in the US to support the near-term advancement of
domestic critical minerals production, including lithium, with a
focus also being placed on the development of critical minerals
production in allied countries. Prior to the commencement of
service, Promethean will receive a creation budget of
US$50,000 used to develop materials for the campaign, with the
balance of US$450,000 directed towards the digital media budget.
Initially, the Company will pay Promethean an initial media deposit
of US$150,000, with the residual budget being paid in subsequent
monthly installments. The Agreement may be terminated at any time
upon written notice.
Promethean has advised that it does not have any
equity interest in the securities of the Company, or any right to
acquire such an interest. Promethean is at arm’s length to the
Company. Promethean will provide the Company with an opportunity to
review all content describing the Company generated on behalf of
Promethean prior to its publication and Promethean will not publish
or distribute any content without the prior approval of the
Company. All services provided by Promethean will be
overseen on Promethean’s behalf by Kailyn White, Vice
President.
Plateau Energy Metals Inc.
The Company is also pleased to announce the
resolution of regulatory proceedings brought by the Ontario
Securities Commission (“OSC”) against its
subsidiary Plateau Energy Metals Inc. (“Plateau”),
and Alexander Holmes and Philip Gibbs (collectively, the
“Executives”), the former Chief Executive Officer
and Chief Financial Officer, respectively, of Plateau. The
proceedings relate to historical disclosure by Plateau in 2019,
prior to the acquisition of Plateau by the Company in May 2021. The
proceedings were ongoing at the time Plateau was acquired by the
Company.
In the final resolution of the proceedings,
Plateau and the Executives have entered into a joint settlement
agreement (the “Settlement Agreement”) with the
OSC. As part of the settlement terms, Plateau and the Executives
agreed to pay administrative penalties totaling $750,000, as well
as $300,000 towards the costs of the OSC. Plateau is responsible
for the payments in accordance with indemnity obligations owing to
former directors and officers.
While Plateau and the Executives had continued
to defend the proceedings brought by the OSC, the Company is of the
view that this resolution will allow it and the management team to
focus all efforts on advancing all three active projects. At the
same time, the Settlement Agreement avoids additional ongoing
expenses of continuing to defend the proceedings and provides
certainty on the financial outcome.
Selected Financial DataThe
following selected financial data is summarized from the Company’s
consolidated financial statements and related notes thereto (the
“Financial Statements”) for the three and six
months ended August 31, 2022. A copy of the Financial Statements
and MD&A is available at www.americanlithiumcorp.com or on
SEDAR at www.sedar.com.
|
Three months ended August 31, 2022 |
Three months endedAugust 31,
2021 |
Loss and comprehensive loss |
$10,709,964 |
$8,867,509 |
Loss per share - basic and diluted |
0.05 |
0.05 |
|
As at August 31, 2022 |
Year EndFebruary 28, 2022 |
Cash |
$42,311,173 |
$55,855,718 |
Total assets |
$188,910,671 |
$193,493,125 |
Total current liabilities |
$4,153,684 |
$1,863,445 |
Total liabilities |
$4,341,810 |
$2,691,682 |
Total shareholders’ equity |
$184,568,861 |
$190,801,443 |
About American
LithiumAmerican Lithium, a member of the TSX Venture 50,
is actively engaged in the development of large-scale lithium
projects within mining-friendly jurisdictions throughout the
Americas. The Company is currently focused on enabling the shift to
the new energy paradigm through the continued development of its
strategically located TLC lithium claystone project in the richly
mineralized Esmeralda lithium district in Nevada, as well as
continuing to advance its Falchani lithium and Macusani uranium
development-stage projects in southeastern Peru. Both Falchani and
Macusani have been through robust preliminary economic assessments,
exhibit strong significant expansion potential and enjoy strong
community support. Pre-feasibility work has now commenced at
Falchani.
For more information, please contact the Company
at info@americanlithiumcorp.com or visit our website
at www.americanlithiumcorp.com for project update videos
and related background information.
Follow us on Facebook, Twitter and
LinkedIn.
On behalf of the Board of Directors of
American Lithium Corp.
“Simon Clarke”
CEO & Director
Tel: 604 428 6128
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
Cautionary Statement Regarding Forward
Looking InformationThis news release contains certain
forward-looking information and forward-looking statements
(collectively “forward-looking statements”) within the meaning of
applicable securities legislation. All statements, other than
statements of historical fact, are forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements regarding the ability to appeal the
judicial ruling, and any other statements regarding the business
plans, expectations and objectives of American Lithium.
Forward-looking statements are frequently identified by such words
as "may", "will", "plan", "expect", "anticipate", "estimate",
"intend", “indicate”, “scheduled”, “target”, “goal”, “potential”,
“subject”, “efforts”, “option” and similar words, or the negative
connotations thereof, referring to future events and results.
Forward-looking statements are based on the current opinions and
expectations of management are not, and cannot be, a guarantee of
future results or events. Although American Lithium believes that
the current opinions and expectations reflected in such
forward-looking statements are reasonable based on information
available at the time, undue reliance should not be placed on
forward-looking statements since American Lithium can provide no
assurance that such opinions and expectations will prove to be
correct. All forward-looking statements are inherently uncertain
and subject to a variety of assumptions, risks and uncertainties,
including risks, uncertainties and assumptions related to: American
Lithium’s ability to achieve its stated goals; risks and
uncertainties relating to the COVID-19 pandemic and the extent and
manner to which measures taken by governments and their agencies,
American Lithium or others to attempt to reduce the spread of
COVID-19 could affect American Lithium, which could have a material
adverse impact on many aspects of American Lithium’s businesses
including but not limited to: the ability to access mineral
properties for indeterminate amounts of time, the health of the
employees or consultants resulting in delays or diminished
capacity, social or political instability in Peru which in turn
could impact American Lithium’s ability to maintain the continuity
of its business operating requirements, may result in the reduced
availability or failures of various local administration and
critical infrastructure, reduced demand for the American Lithium’s
potential products, availability of materials, global travel
restrictions, and the availability of insurance and the associated
costs; the judicial appeal process in Peru, and any and all future
remedies pursued by American Lithium and its subsidiary Macusani to
resolve the title for 32 of its concessions; risks regarding the
ongoing Ontario Securities Commission regulatory proceedings; the
ongoing ability to work cooperatively with stakeholders, including
but not limited to local communities and all levels of government;
the potential for delays in exploration or development activities
due to the COVID-19 pandemic; the interpretation of drill results,
the geology, grade and continuity of mineral deposits; the
possibility that any future exploration, development or mining
results will not be consistent with our expectations; risks that
permits will not be obtained as planned or delays in obtaining
permits; mining and development risks, including risks related to
accidents, equipment breakdowns, labour disputes (including work
stoppages, strikes and loss of personnel) or other unanticipated
difficulties with or interruptions in exploration and development;
risks related to commodity price and foreign exchange rate
fluctuations; risks related to foreign operations; the cyclical
nature of the industry in which American Lithium operates; risks
related to failure to obtain adequate financing on a timely basis
and on acceptable terms or delays in obtaining governmental
approvals; risks related to environmental regulation and liability;
political and regulatory risks associated with mining and
exploration; risks related to the uncertain global economic
environment and the effects upon the global market generally, and
due to the COVID-19 pandemic measures taken to reduce the spread of
COVID-19, any of which could continue to negatively affect global
financial markets, including the trading price of American
Lithium’s shares and could negatively affect American Lithium’s
ability to raise capital and may also result in additional and
unknown risks or liabilities to American Lithium. Other risks and
uncertainties related to prospects, properties and business
strategy of American Lithium are identified in the “Risks and
Uncertainties” section of Plateau’s Management’s Discussion and
Analysis filed on January 19, 2021, in the “Risk Factors” section
of American Lithium’s Management’s Discussion and Analysis filed on
January 29, 2021, and in recent securities filings available at
www.sedar.com. Actual events or results may differ materially from
those projected in the forward-looking statements. American Lithium
undertakes no obligation to update forward-looking statements
except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements. Cautionary
Note Regarding Macusani Concessions Thirty-two of the 151
concessions held by American Lithium’s subsidiary Macusani, are
currently subject to Administrative and Judicial processes
(together, the “Processes”) in Peru to overturn resolutions issued
by INGEMMET and the Mining Council of MINEM in February 2019 and
July 2019, respectively, which declared Macusani’s title to 32 of
the concessions invalid due to late receipt of the annual validity
payments. In November 2019, Macusani applied for injunctive relief
on 32 concessions in a Court in Lima, Peru and was successful in
obtaining such an injunction on 17 of the concessions including
three of the four concessions included in the Macusani Uranium
Project PEA. The grant of the Precautionary Measure (Medida
Cautelar) has restored the title, rights and validity of those 17
concessions to Macusani until a final decision is obtained at the
last stage of the judicial process. A Precautionary Measure
application was made at the same time for the remaining 15
concessions and was ultimately granted by a Court in Lima, Peru on
March 2, 2021 which has also restored the title, rights and
validity of those 15 remaining concessions to Macusani, with the
result being that all 32 concessions are now protected by
Precautionary Measure (Medida Cautelar) until a final decision on
this matter is obtained at the last stage of the judicial process.
The favourable judge’s ruling confirming title to all 32
concessions from November 3, 2021 represents the final stage of the
current judicial process. However, this ruling has recently been
appealed by MINEM and INGEMMET. American Lithium has no assurance
that the outcome of these appeals will be in the Company’s
favour.
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