American Lithium also plans to implement a strategic approach to the uranium assets of Plateau, specifically Macusani, believed to be the largest uranium deposit in Peru.
It is expected that Plateau shareholders will hold approximately 21% of American Lithium’s shares on an outstanding undiluted basis upon completion
“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,” Michael Kobler, CEO and Director of American Lithium, commented in a news release.
Under the terms of the agreement, American Lithium will acquire all the issued and outstanding common shares of Plateau on the basis of 0.29 units for each share of Plateau held.
Each unit will consist of one American Lithium common share plus one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of American Lithium at an exercise price of C$3.00 for a period of 36 months from the date of completion.
The arrangement represents a 72% premium to Plateau shareholders using the trailing 20-day volume weighted average trading price on the TSX Venture Exchange of each company as of market close on February 5, 2021.
It is expected that Plateau shareholders will hold approximately 21% of American Lithium’s shares on an outstanding undiluted basis upon completion of the transaction.
“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,” Laurence Stefan, President and COO of Plateau, further added.
Following announcement of the deal, shares of American Lithium surged 15.3% to a 52-week high of C$3.49 by midday Wednesday. The company’s market capitalization is C$441.1 million.
Shares of Plateau Energy Metals also hit a 52-week high of C$0.95 earlier in the session. The stock was up 46.6% to C$0.88 by midday Wednesday, giving the junior miner a market capitalization of C$91.3 million.
