American Lithium (TSXV: LI) is bolstering its flagship project in Nevada, announcing this morning that it would be repurchasing a portion of the outstanding royalty on the property in addition to entering an agreement to expand the land claim for the project.
With respect to the repurchasing of a royalty currently outstanding on the property, American will be repurchasing a 1.5% stake from that of Nevada Alaska Mining Co. The royalty will be reduced for a cash payment of $150,000, in addition to the issuance of 843,750 common shares of the company at a price of $1.36 per share. Upon closing of the transaction, Nevada Alaska will retain a royalty of just 1.0%.
American Lithium will also be expanding its landholdings at the property, indicating in a morning press release that it will be acquiring a Nevada firm that currently holds lode mining claims for 2,000 acres of land within Nevada. The additional claims are contiguous to American’s TLC property to the north and northwest. A land map outlining the location of the additional claims was not provided.
The additional property is said to be highly prospective for lithium claystone based on work done at the TLC property and surface sampling conducted to the north of the property. The additional claims have a somewhat hefty price tag however, with the company issuing 4.0 million common shares at a price of $1.36 per share, equating to paying roughly $5.44 million in exchange for the property. The new property is unencumbered, and has no royalty obligations.
American Lithium last traded at $2.02 on the TSX Venture, up 18.82% on the day.
Information for this analysis was found via Sedar and American Lithium. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
