American Pacific drills hit high-grade copper-zinc at Palmer as it preps for resource update
Highlight hole cut 18 metres at 1.5% copper and 5.4% zinc (4.4% copper equivalent) from 203.6 metres depth.
American Lithium (TSXV: LI) announced Friday it will buy back 1.5% of the existing gross overriding royalty pertaining to its wholly owned TLC lithium claystone property from Nevada Alaska Mining, an arm’s length party.
The TLC project, located approximately midway between Las Vegas and Reno near the town of Tonopah, Nevada, is a new lithium claystone discovery within in the same basinal environment as Albemarle’s Silver Peak lithium mine.
The TLC discovery is amongst a handful of potential lithium deposits in Western North America capable of development
With an estimated 5.3 million tonnes of measured and indicated lithium carbonate equivalent resources, and an additional 1.7 million tonnes inferred resources, the TLC discovery is amongst a handful of potential lithium deposits in Western North America capable of development.
Nevada Alaska currently holds a 2.5% gross overriding royalty on commercial production from the property, and the buyback would reduce American Lithium’s royalty obligation on TLC to 1.0%.
As consideration, American Lithium will pay $150,000 cash and issue 843,750 common shares to Nevada Alaska at a deemed price of C$1.36 per share.
Meanwhile, American Lithium has entered an agreement with a separate arm’s length party to acquire a series of lode mining claims totalling approximately 2,000 acres northwest of the TLC property. The company will issue four million common shares at a deemed price of C$1.36 per share to acquire these land claims, which it says are highly prospective for lithium claystone based on projections from recent drilling.
Shares of American Lithium soared to a new 52-week high of C$2.03 on Friday. The stock was trading 17.6% higher on the TSX Venture Exchange by 1 p.m. EDT. The Vancouver-based lithium explorer has a market capitalization of approximately C$184.2 million.
