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Monday, Feb 6, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Mining

American Lithium to spin-out Peru uranium project into separate company

The company plans to finalize the terms of the transaction early next year

American Lithium to spin-out its Peruvian uranium project into independent company
Uranium rich rock at the Macusani Project, Peru. Photo via American Lithium

Vancouver-based American Lithium Corp. (TSX-V: LI) (OTCQB: LIACF) (FSE: 5LA1) has made a calculated decision to convert or “spin-out” its Peruvian uranium project into an independent public company.

American Lithium announced news of the transaction on Wednesday and says converting the Macusani Project into a stand-alone vehicle will be the ideal route to generate value for the company and its shareholders.

The company also says re-structuring of the Macusani Project’s ownership is well underway and that it expects to be in a position to finalize the terms of the transaction early next year.

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American Lithium feels that its current share price does not adequately recognize the value of the Peruvian uranium project and that the spin-out will enable the company and its shareholders to capitalize on the project’s value. The transaction will also allow the company to focus on its two premier lithium projects in Peru and Nevada.

“We are pleased to be able to begin the process of spinning-out this large-scale and advanced-stage uranium project in such a way as to benefit the company and all of our shareholders,” said Simon Clarke, CEO of American Lithium.

“The Macusani Project comprises one of world’s largest undeveloped uranium projects whose ease of extraction and ‘near surface’ characteristics position it with the potential to be one of the lowest cost sources of uranium globally.”

Clarke also added that considering growing concerns around climate change and energy security, the Macusani Project can help play a significant role in the transition to zero emission base-load electricity generation that the world needs from its ideal location in South America.

Highlights of the Macusani Project and more details regarding the proposed transaction can be found in the company’s recent news release.

 

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