TSX-V-listed juniors American Lithium and Plateau Energy on Tuesday announced the consolidation of two strategic undeveloped lithium assets at a time of rapidly growing demand backed by an increasing focus on electric vehicles, energy storage and renewable energy generation.
The acquisition of Plateau Energy would establish American Lithium as a consolidator of development assets in the Americas, the company said, stating that the deal would substantially increase its resource base by combining the TLC project, in Nevada, and the Falchani project, in Peru.
“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,” said American Lithium CEO and director Michael Kobler.
Under the terms of the agreement, American Lithium has agreed to acquire all the issued and outstanding common shares of Plateau on the basis of 0.29 units for each share of Plateau held.
Each exchange unit will consist of one common share of American Lithium and one-half of a common share purchase warrant of American Lithium. Each exchange warrant will entitle the holder to acquire one additional common share of American Lithium at an exercise price of $3.00 for a period of 36 months from completion of the transaction.
Pursuant to the terms of the agreement, American Lithium will acquire all the issued and outstanding common shares of Plateau on the basis of 0.29 exchange units for each share of Plateau held.
“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,” commented Plateau president and CEO Laurence Stefan.
The arrangement has been approved by the board of directors of American Lithium and Plateau, and the directors of Plateau, based on the recommendation of a special committee of independent directors of Plateau, recommend that Plateau shareholders and optionholders vote in favour of the transaction.