American Lithium Corp. has announced it has entered into an agreement with Nevada Alaska Mining Co. Inc., an arms-length party, to buy back the remaining 1% gross overriding royalty on the company’s wholly owned TLC Lithium Project (TLC) located in the Esmerelda lithium district northwest of Tonopah, Nevada.
Pursuant to the terms of the Agreement, American Lithium will issue 950,000 common shares in the capital of the company to Nevada Alaska Mining Co. Inc. The Shares will be subject to a statutory hold period of 4 months and 1 day in accordance with applicable securities laws. The acquisition of the Royalty, and issuance of the Shares, remains subject to the approval of the TSX Venture Exchange.
Simon Clarke, American Lithium CEO, states, “we are very pleased to have reached this agreement with the royalty holder to buy back this valuable royalty, which also ensures that the Company will control 100% of all concessions comprising TLC. As TLC moves through development and into production, this transaction should be highly accretive and will maximise Project value. Removing this remaining royalty also enables us to present TLC as wholly unencumbered in our maiden PEA which is expected to be released in the next few days.”