American Lithium consolidates Clayton Valley claims

VANCOUVER (miningweekly.com) – TSX-V-listed project consolidator American Lithium has announced the largest acquisition of claims in the prospective lithium-rich Clayton Valley, of Nevada.

The nearly 17 000 ha of land, comprising three land packages, all of which were deemed prospective for lithium brines and/or lithium clay potential by American Lithium, adds to the company's current landholding of 436 ha in Clayton Valley, and the 7 508 ha landholdings in Fish Lake, Nevada, which is located about 38 km from Albemarle's Silver Peak mine - the largest lithium operation in the US.

"We are delighted with this singular largest acquisition of lithium claims in the Clayton Valley in recent years. Limited by geographical factors, with this acquisition, all of the prospective land within this closed sedimentary basin has been fully staked and registered by several major landholders.

“We look forward to taking advantage of the exponentially growing lithium market by offering our shareholders access to the largest, unencumbered and highly prospective exploratory project in the heart of North America's only established lithium producing basin,” COO Mike Kobler stated Tuesday.

American Lithium will issue 11.5-million common shares on closing, with bonus shares issuable upon reaching certain project milestones, such as having completed further debt or equity financings for proceeds of no less than C$10-million; the company reaching a market capitalisation of C$150-million; the company having received a resource estimate demonstrating 500 000 t of lithium within the claim blocks; and the company having completed a preliminary economic assessment on the properties comprising the claim blocks.

Closing remains subject to a number of conditions, including negotiating definitive documentation, the completion of a C$3-million financing, and TSX-V approval, among other conditions.

Analysts have cautioned that the US lithium market is circling bubble territory, noting, however, that out of the bubble should emerge a few real projects. The potential for a bubble lies in the project promoters who crawled out of the woodwork when it became apparent that a lithium supply gap was emerging, but who have little interest in pursuing resources or reserves.