American Lithium has entered into an agreement with Nevada Alaska Mining Co., an arms-length party, to buy back the remaining 1% gross overriding royalty on the miner’s TLC Lithium project, located northwest of Tonopah, Nev.
“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,” said Simon Clarke, American Lithium CEO.
“As TLC moves through development and into production, this transaction should be highly accretive and will maximize 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.”
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. The acquisition of the royalty, and issuance of the shares, remains subject to the approval of the TSX Venture Exchange.
TLC currently hosts 4.2 Mt lithium carbonate equivalent (LCE) measured resources, 4.63 Mt LCE indicated resources and 1.86 Mt LCE inferred resources.
Source: American Lithium