HomeAmerican LithiumAmerican Lithium Greenlights Spinoff of Macusani Project, Paving Way for International Uranium...

American Lithium Greenlights Spinoff of Macusani Project, Paving Way for International Uranium Corp

In a strategic move designed to amplify shareholder value, American Lithium Corp. has reached a final agreement to spin out its Macusani uranium project into a standalone public company, International Uranium Corp.

The move is intended to unlock the potential of this promising, advanced-stage uranium venture while allowing American Lithium to sharpen its focus on its primary lithium projects.

As part of the agreement, American Lithium’s wholly owned Peruvian subsidiary, which holds the mineral concessions for Macusani, will transfer to International Uranium. The latter will consolidate its outstanding shares, issue 80 million new shares in return for Macusani. It will also undergo board restructuring to include nominees from American Lithium.

Unlocking One of the Largest Undeveloped Uranium Projects

On completion, International Uranium expects to have $5 million in cash available. The spin out also aims to raise an additional $15 million through a brokered private placement of subscription receipts.

International Uranium emerges from this transaction well-positioned to propel Macusani towards feasibility and beyond. Macusani is one of the world’s largest undeveloped uranium projects.

Notably, the project’s ease of extraction and high-purity uranium resources earmark it as a potential low-cost uranium source. It also has the capacity to contribute significantly to the zero-emission base-load electricity generation needed in the face of mounting energy security and climate change concerns.

The agreement further says that International Uranium will assume ownership and control over Macusani, with the company’s nominees comprising the management. The current development team in Peru will continue operations under the new arrangement. And American Lithium will retain the right to participate in any future commercially viable lithium discoveries on the Macusani project.

The agreement marks American Lithium’s strategic pivot towards its premier lithium projects – TLC in Nevada and Falchani in Peru. All while leveraging its specialization to further advance these lithium ventures. Shareholders can expect an upcoming announcement on the distribution of the newly issued shares.

As the deal awaits necessary approvals and the fulfillment of certain conditions, International Uranium’s trading has been temporarily halted.

The successful execution of this transaction will highlight American Lithium’s vision and its ongoing commitment to creating value for shareholders while actively supporting the transition to renewable energy.

Read full news release here.

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