American Lithium Corp. and Plateau Energy Metals Inc. announced that they have entered into a definitive arrangement agreement (the “Agreement”) to consolidate two significant and strategic undeveloped lithium assets in the Americas at a time of rapidly growing lithium demand in the context of increasing focus on electric vehicles, energy storage and renewable energy generation.
It is expected that Plateau shareholders will hold approximately 21% of American Lithium’s shares on an outstanding undiluted basis upon completion of the Transaction (as defined below).
Transaction Highlights
Benefits to American Lithium Shareholders
✔️ Establishes American Lithium’s position as a consolidator of lithium development assets in the Americas
✔️ Substantially increases the lithium resource base combining American Lithium’s TLC lithium project (“TLC”) in Nevada and Plateau’s Falchani lithium project (“Falchani”) in Peru
✔️ Adds additional growth potential to further explore and develop these district-scale lithium properties on a consolidated platform
✔️ Exposure to the Macusani Uranium project (“Macusani”), believed to be the largest uranium deposit in Peru
✔️ Complementary addition of key executives with significant technical expertise in lithium extraction and metallurgy
Benefits to Plateau Shareholders
✔️ Immediate and attractive premium to Plateau shareholders of 84% on a spot basis and 72% on a VWAP20 (as defined below) basis as of market close on February 5, 2021
✔️ Opportunity to participate in a leading lithium explorer and developer with a highly strategic asset located proximal to the Tesla Gigafactory in mining-friendly Nevada as the US looks to expedite domestic production of lithium as part of its “Critical Mineral” initiatives
✔️ Both jurisdictional and project risk diversification with the potential for two major production centres
✔️ Enhances liquidity, access to capital and marketing expertise with a broad market following, allowing for the upside of the growing lithium market to be better realized
American Lithium intends to implement a strategic approach to the uranium assets of Plateau, specifically Macusani, with the goal of maximizing the value of this asset for the benefit of shareholders of the combined entity following the closing of the transaction.
The timing and exact approach to this asset will be determined following completion of the Transaction (as defined below).
Michael Kobler, CEO and Director of American Lithium, stated:
We are very pleased to be able to add Plateau and its assets to the American Lithium platform.
“We believe that Falchani offers geographic and geological diversity in one of the leading mining jurisdictions in South America and one of the strongest emerging markets globally. The combination of assets and key personnel is complimentary and will position American Lithium with a large and diverse lithium resource base and strong technical expertise from which to unlock significant additional shareholder value.”
Laurence Stefan, President and COO of Plateau, further added:
“This Transaction represents a significant premium for our shareholders and allows us to gain exposure to an asset portfolio in Nevada, a successful team, and a larger public company platform possessing access to capital and excellent trading liquidity. Certain members of Plateau’s team and board will continue on with the newly diversified company to provide for continuity.”
American Lithium Reaches Agreement to Acquire Plateau Energy Metals and Consolidate Development-Stage Lithium Assets, Vancouver, British Columbia and Toronto, February, 9, 2021
