TORONTO (miningweekly.com) – Canadian explorer American Lithium has closed the acquisition of private British Columbia firm 1065604 BC, which held the option to earn an undivided 80% interest in the Atlantis lithium property located in Fish Lake Valley, Esmeralda County, Nevada.
Nevada was ground zero for a land rush to cash in on the strong fundamentals forecast for the price of lithium, as the electric vehicle market started to gain serious traction.
TSX-V-listed American Lithium was formerly known as Menika Mining.
Atlantis was subject to an option agreement between Nevada Sunrise Gold and a Nevada-based property vendor and, with the closing of the transaction to acquire 1065604, American Lithium now held the option to earn an 80% interest in Atlantis from Nevada Sunrise, subject to a royalty in favour of the underlying property vendor.
American Lithium had issued 4.53-million shares as payment for 1065604, and would assume 1065604's obligations regarding Atlantis. The company had made cash payments of $148 000 to Nevada Sunrise and was required to incur exploration expenditures of at least $1-million and issue up to 1.25-million common shares to Nevada Sunrise over three years.