AmericanLithium Corp. said May 9 that it agreed to buy all the outstandingshares of a Canadian exploration company that holds options over claims topotential lithium deposits across 2,882 acres in Esmeralda County, Nev.
The exploration company, 1065604 BC Ltd., holds options toearn an 80% interest in the claims, known collectively as the Atlantisproperty, which is located close to American Lithium's property andis thought to have significant potential for lithium mineralization.
Toronto-listed Nevada Sunrise Gold Corp., the current owner ofAtlantis, signed anoption agreement over the property earlier this year, giving 1065604 BC Ltd.the potential to earn an 80% interest in the property if it met certainconditions.
These conditions included an initial cash payment ofUS$48,000, a further payment of C$100,000 within 30 days, and spending at leastUS$1 million on exploration at the site over a set time period.
American Lithium, which has now bought out 1065604 BC Ltd.,said it has already satisfied some of these conditions, and plans to issue1,250,000 new shares over three years to meet the option deal's otherconditions.
Michael Kobler, CEO of American Lithium, said the Atlantisproperty had geologic features similar to those of 's lithium-brine mineat Clayton Valley, 25 miles to the southeast.
"The structural data confirms a bounding northeasterlystriking fault, with northeasterly crossing faults, rich in hydrothermalenriching conduits. The team at American Lithium, given the new data, isnow implementing a development program to exploit the Fish Lake Valleyassets."