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Re: mick post# 557

Thursday, 11/03/2022 11:02:28 AM

Thursday, November 03, 2022 11:02:28 AM

Post# of 669
American Lithium Announces Financial and Operating Results
for the Period Ended August 31, 2022

VANCOUVER, BRITISH COLUMBIA, November 2, 2022 – 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 Data
The 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 ended
August 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 End
February 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
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