American Lithium is expecting to complete its acquisition of land in the Clayton Valley Basin in Nevada, US, before the end of the year.
Announced on 15 November, the acquisition includes 41,850 acres within the Clayton Valley Basin, which has high lithium prospects.
The purchased land will complements the company’s current landholdings of 1,078 net acres in the Clayton Valley, 18,552 contiguous acres (7,508 hectares) in Fish Lake Valley and the 2,240-acre (907 hectares) San Emidio project in Washoe county.
As per the acquisition announcement in November, American Lithium will undertake a non-brokered private placement for gross proceeds of $3m.
The company will offer up to 13.4 million units, each of which includes a common share and one share purchase warrant, at a price of $0.225 per unit.
With the warrant, the shareholder can purchase an additional common share at $0.50 per share for 36 months from closing.
American Lithium also expects to pay finder's fees to eligible people who introduce the company to qualified investors.
It has planned to use the proceeds to advance exploration and acquisition programmes in Nevada and as general working capital.
American Lithium CEO Michael Kobler said: “Although we are quite disappointed that oversights in our third-party assay lab will result in a lowering of our surface brine sample results, the samples in question are the surface brines taken to provide basic geological information and do not influence our January 2017 drilling campaign into the classic depths targeting the lithium brine aquifers in the North Playa of Fish Lake and Clayton Valley.”
The acquisition is subject to closing conditions, including approval from TSX Venture Exchange.