AmeriLithium Secures $10 Million Financing Agreement to Support Exploration Program
LAKE TAHOE, NV, March 29 /PRNewswire-FirstCall/ -- AmeriLithium (OTC Bulletin Board: AMEL; "AmeriLithium" or "the Company") entered into a $10 million financing agreement on March 26, 2010 with a European institutional investor ("the Investor") focused on mining ventures. The financing will effectively enable AmeriLithium to launch its geological exploration program for its North American properties.
According to the terms of the deal, AmeriLithium receives a $10 million equity draw down facility. In exchange, the Investor receives AmeriLithium stock at an exercise price of 95% volume weighted average price (VWAP) calculated using the term of the past five (5) trading days. The Company also grants the Investor 100% warrant coverage at a warrant price of 150% of the price of the unit purchased (i.e., the 95% VWAP).
NORTH AMERICAN EXPLORATION PROGRAM
AmeriLithium's 5,880-acre Paymaster Project is adjacent to the only US-based lithium producing plant, which is located in Nevada's Clayton Valley, home of the highest lithium content found in any brines tested by the US Geological Survey (USGS) in southwestern US playas and basins.(1) In light of the Paymaster Project's close proximity to the Clayton Valley production, an exploration program of surveys and drilling has been recommended(2) to determine the potential of AmeriLithium's holdings to tap the proven brine formations.
AmeriLithium's ~664,049-acre Americana Property in Alberta, Canada overlies a potential extension of two formations identified by the Alberta Geological Survey (AGS) as containing formation waters containing potentially economic amounts of lithium.(3) The AGS recommended further analysis of the formation waters for lithium, stating that the lithium contents are similar to those of the only US-based lithium plant in Clayton Valley, Nevada (as mentioned above).(4)
"We couldn't be happier," said Matthew Worrall, CEO of AmeriLithium, in commenting on the financing agreement. "Not only has AmeriLithium gained the support and substantial financial backing of a forward-thinking backer, but through this investment we also find ourselves in the perfect position to immediately initiate our exploration program. While we have a lot of work ahead of us, we're fortunate that both our projects are in regions with rich histories in mineral extraction. As such, the infrastructure, machinery and human expertise are already in place to get on with the job of further surveying and hopefully drilling."
More information on AmeriLithium's North American exploration program, and additional information regarding the Company, can be found at AmeriLithium's corporate website www.amerilithium.com along with the facility to sign up for regular news updates.
ABOUT LITHIUM: Lithium is a lightweight metal used in a wide range of consumer products the world over: the medical industry uses lithium as an anti-depressant; industrial uses include glass, ceramic and porcelain enamel manufacture; the aviation industry uses lithium in alloys. Of particular interest is the use of lithium for battery production, which has expanded significantly in recent years due to rechargeable lithium batteries being used increasingly in electrical tools and in the rapidly expanding portable electronics market. Furthermore, the next generation of hybrid and electric vehicles are being designed to use high-capacity lithium-ion batteries as environmentally-friendly fuel alternatives while the Obama administration has introduced $5 billion in funding and incentives for the development of a secure, domestic battery industry with special focus on lithium-ion batteries.
ABOUT AMERILITHIUM: AmeriLithium is a publicly traded (NASD OTC BB: AMEL), mining company committed to progressively developing into one of the leading American players in the global lithium industry. The Company is headquartered in Lake Tahoe, NV. AmeriLithium has amassed a lithium portfolio consisting of ~710,000 acres, including a Nevada-based project adjacent to the only lithium producing plant in the US, a large project in Alberta, Canada, and a project in Western Australia.
ON BEHALF OF THE BOARD OF DIRECTORS,
AmeriLithium Corp.
Matthew Worrall, Chief Executive Officer
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AmeriLithium Corp. |
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297 Kingsbury Grade |
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Lake Tahoe |
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Douglas County |
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NV 89449-4470 |
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(775) 996-2210 |
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(775) 996-2212 |
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Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. AmeriLithium Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to AmeriLithium Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. AmeriLithium Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
(1) NI 43-101 Technical Report by Coast Mountain Geological Ltd for Rodinia Minerals Inc, Mar. 12, 2009
(2) PM Placer Mineral Claims report, GeoXplor Corp, Nov. 25, 2009
(3) Resource Estimates of Industrial Minerals in Alberta Formation Waters. Alberta Geological Survey, Jan. 31, 1995
(4) Industrial Mineral Potential of Alberta Formation Waters. Alberta Geological Survey, 1995
SOURCE AmeriLithium Corp.
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