American Lithium Corp. (“
American Lithium” or the
“
Company”) (TSX-V:LI | NASDAQ:AMLI |
Frankfurt:5LA1) is pleased to provide operating and financial
highlights for the third-quarter ending November 30, 2022. Unless
otherwise stated, all amounts presented are in Canadian dollars.
“During the quarter, the Company made strong
progress and delivered on several key milestones,” stated Simon
Clarke, CEO of American Lithium. “Successful drilling at TLC
allowed us to deliver new and expanded resources, forming the
foundation for the Company’s maiden PEA announced yesterday.”
During the Quarter:
- Positive drill results at
TLC – continued to receive strong drill results from its
2022 drill program as it intersected high grade sections at
TLC.
- Board Appointment
– addition of Carsten Korch to the Board of Directors as
an independent director based in Lima, Peru.
Subsequent Events:
- Mineral Resource Estimate
at TLC – reported significant increase in lithium
resources at TLC: Measured Resources increased 25% and Indicated
Resources increased 129%.
- Macusani “Spin-Out”
– announced intention to “spin-out” its Macusani Uranium
Project in Peru into an independent public company for the benefit
of shareholders.
- Nasdaq Listing -
commenced trading on Nasdaq Capital Markets under the symbol
AMLI.
- Test Work Results at TLC
– confirmed 99.4% purity lithium carbonate precipitation
after 97.7% lithium leach extraction and overall lithium recovery
of 88.1% at TLC.
- Royalty Buyback –
announced buy back of remaining 1% royalty at TLC which is now 100%
owned by the Company.
- Reporting of PEA
– announced the results of a robust PEA at its wholly
owned TLC project in Nevada.
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 November 30, 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 November 30, 2022 |
Three months endedNovember30,
2021 |
Loss and comprehensive loss |
$5,436,973 |
$5,025,637 |
Loss per share - basic and diluted |
$(0.03) |
$(0.03) |
|
As at November 30, 2022 |
Year EndFebruary 28, 2022 |
Cash, cash equivalents and short-term investments |
$37,189,110 |
$55,855,718 |
Total assets |
$183,914,633 |
$193,493,125 |
Total current liabilities |
$2,191,745 |
$1,863,445 |
Total liabilities |
$2,362,560 |
$2,691,682 |
Total shareholders’ equity |
$181,552,073 |
$190,801,443 |
Options, RSU and PSU Grants
The Company announces that it has granted an
aggregate of 1,300,000 incentive stock options (the
“Options”) to certain officers, directors,
employees and consultants of the Company in accordance with the
Company’s incentive stock option plan, and as compensation for
ongoing services rendered to the Company. The Options vest over a
period of 12 months and are exercisable at a price of $4.85 until
February 2, 2027.
The Company also announces that it has granted
an aggregate of 2,420,000 restricted share units (each, an
“RSU”) and 2,000,000 performance share units
(each, a “PSU”) to certain officers, directors and
employees of the Company. Each RSU and PSU represents the right to
receive, once vested, one common share in the capital of the
Company. The RSUs vest on February 2, 2024, subject to earlier
vesting in the event of a change of control and subject to the
polices of the TSX Venture Exchange. The PSUs will vest upon a
change of control or the disposition of a controlling interest in
one of the Company’s core assets, but will not vest in connection
with the contemplated “spin-out” transaction involving the Macusani
Uranium Project as announced on December 7, 2022.
All securities issued to officers and directors
of the Company will be subject to restrictions on resale for a
period four-months-and-one-day following the original issuance of
such securities, in accordance with the policies of the TSX Venture
Exchange.
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 Information
This 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, the anticipated timing for completion of the PEA,
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; 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 “Risk Factors” section of American Lithium’s Management’s
Discussion and Analysis filed on June 28, 2022, 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
ConcessionsThirty-two of the 169 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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