Metals Update 11/05/2021

Superior Gold earns $3.5-million (U.S.) in Q1

Superior Gold Inc. has released its financial results for the first quarter of 2021 for the company’s 100-per-cent-owned Plutonic gold operations, located in Western Australia. All currency figures are in U.S. dollars unless otherwise stated.

First quarter highlights:

  • Increased production by 11 per cent over the fourth quarter of 2020 to 17,603 ounces, with sales of 17,538 ounces;
  • Improved stope grade by a further 13 per cent to 3.5 grams per tonne gold, representing an improvement for a third consecutive quarter;
  • Increased milling recoveries to 86 per cent, in part due to the finalization of recommissioning of the gravity circuit in the fourth quarter of 2020;
  • Realized a record average gold price of $1,777 per ounce above all-in sustaining cost (AISC) of $1,510/oz, a 10-per-cent reduction from the fourth quarter of 2020;
  • Net income for the period of three cents per share and adjusted net income of one cent per share;
  • Significantly improved cash flow from operations to $4.9-million before changes in working capital and gold loan repayment;
  • Generated free cash flow increasing the cash position at quarter-end to $17.9-million in cash and cash equivalents;
  • Repaid $2.2-million of the Auramet gold loan, with the remaining $2.0-million scheduled to be fully repaid by June 30, 2021;
  • Announced positive exploration results, establishing two new mining fronts, results included 21.8 g/t gold over 8.3 metres at the Baltic Gap mining front and 13.7 g/t gold over 8.8 metres at the Western mining front;
  • Recorded zero incidences of COVID-19 infection for a fifth consecutive quarter.

Tamara Brown, interim chief executive officer of Superior Gold, stated: “Our first quarter results are a significant improvement and begin to highlight the full potential of Plutonic. We are delighted to report our third quarter-over-quarter increase in production as well as a meaningful decrease in AISC over the prior quarter. The operational initiatives that we put in place last year are resulting in a steady improvement in our mined stope grade, which has increased for a third consecutive quarter and represents a 47-per-cent improvement relative to the second quarter of 2020, after which we initiated the changes at the company. Pleasingly, this operational improvement is driving cash flow from operations of close to $5-million, with the resultant free cash flow further improving our cash position.

“In addition, we have further advanced our geological understanding of the Plutonic orebody, including the northwest-trending faults that control the location and concentration of higher-grade gold mineralization. This has led to a number of strategically significant exploration results, demonstrating that there are a number of new high-grade mining fronts potentially opening at Plutonic, as well as the identification of higher-grade stopes on the operational front. Over the coming quarters, we will continue to advance these improvements in our geological modelling and look forward to providing further exploration updates.

“We also continue to advance the strategic projects necessary to reposition Plutonic for sustainable, long-term success. The restart of open-pit mining is on target to begin midyear at Plutonic East. The displacement of low-grade stockpile with higher-grade open-pit feed, in conjunction with the opening of new underground mining fronts, is expected to continue to improve our grade profile moving forward.

“Finally, we will continue to remain focused on optimizing the underground operation and incorporating new sources of open-pit feed to increase our production levels, while further advancing our understanding of the extensions of the mineralization at Plutonic. We expect that these improvements, combined with the upcoming full repayment of our gold loan in June, will drive a continued improvement in our financial performance over the course of 2021 and beyond.”

                   (all amounts in millions except where noted)
Financial                                            Three months ended March 31, 2021

Revenue                                                                          $31.2
Cost of sales                                                                     26.9
General and administrative                                                         1.5
Operating income (loss)                                                            2.2
Income (loss) before taxes                                                         3.6
Net income (loss)                                                                  3.5
Earnings (loss) per share -- basic and diluted                                    0.03
Adjusted net income (loss)                                                         1.8
Adjusted net income (loss) per share -- basic                                     0.01
Cash flow from operations                                                          4.0
Gold produced (ounces)                                                          17,603
Gold sold (ounces)                                                              17,538
Total cash costs ($/ounce)                                                       1,386
All-in sustaining costs ($/ounce)                                                1,510
Average realized price1 ($/ounce)                                                1,777
Total underground material mined (kt)                                              187
Total material milled (kt)                                                         356
Grade milled (g/t gold)                                                            1.8
Recovery (%)                                                                        86

Plutonic gold operations

The Plutonic gold operations produced and sold 17,603 and 17,538 ounces of gold, respectively, for the first quarter of 2021, an increase of 8 per cent and 4 per cent, respectively, over comparative prior-year period. Total cash costs of $1,386/ounce sold and AISC of $1,510/ounce sold were below the realized gold price of $1,777/ounce for the three-month period ending March 31, 2021.

In comparison, 16,351 and 16,850 ounces of gold were produced and sold, respectively, for the first quarter of 2020. Total cash costs of $1,291/ounce sold and AISC of $1,416/ounce sold were below the realized gold price of $1,570/ounce for the three-month period ending March 31, 2020.

Total cash costs and AISC increased over the prior period primarily as a result of the strengthening of the Australian dollar relative to the U.S. dollar, which alone added $206/ounce and $215/ounce, respectively, in comparison with the first quarter of 2020.

The company generated net cash from operations, after working capital changes and after the repayment of $2.2-million to Auramet under the gold loan, of $4.0-million for the three months ending March 31, 2021.

Exploration activities

During the first quarter of 2021, the company released two exploration updates containing important high-grade drill results from its underground drill program as part of its strategy to identify new mining fronts to allow for improved mining grades and productivity and reduced reliance on remnant mining.

The company announced results from the Western mining front, northwest of the Baltic zone, which were highlighted by 13.7 g/t gold over 8.8 metres (UDD23656) and 52.7 g/t gold over 1.0 metres (UDD23653). These intercepts are outside of existing mineral resources but are within only 50 metres of existing infrastructure and can therefore be accessed with minimal capital. Encouragingly, it is worth noting that all of the drill holes completed to target depth hit significant intercepts.

Toward the end of the first quarter, the company announced results from the Baltic Gap, which were highlighted by 21.8 g/t gold over 8.3 metres and 13.4 g/t gold over 5.0 metres (UDD23880) and 20.7 g/t gold over 2.1 metres (UDD23820). The results represent the identification of a potential new mining front with mineralization extending up to 165 metres outside of the current mineral resource envelope. Similar to the results released in the past year, which were highlighted by 40.4 g/t gold over 6.5 metres (UDD22310), these latest intercepts are outside of existing mineral resources, but are within only 50 metres of existing underground infrastructure.

2021 guidance

The company continues to maintain its 2021 guidance, which was previously announced on Jan. 21, 2021. Details of production, cost and capital expenditure guidance for the year are summarized in the associated table.

Operating parameters                                         Low            High

Production (oz of gold)                                   65,000          75,000
Cash costs ($/oz)                                         $1,350          $1,450
All-in sustaining costs ($/oz)                            $1,500          $1,600
Exploration expenditure ($ million)                                   $3.5M-6.5M
Sustaining capital expenditures ($ million)                           $4.0M-4.5M
Non-sustaining capital expenditures ($ million)                       $3.0M-5.0M

Conference call

Management will host a conference call and webcast on Tuesday, May 11, 2021, at 10 a.m. Eastern Time to discuss the first quarter 2021 financial and operating results.

Conference call and webcast:

Date:  Tuesday, May 11, 2021, 10 a.m. Eastern Time

Toll-free North America:  888-231-8191

Local or International:  647-427-7450

Conference call replay:

Toll-free North America:  855-859-2056

Local or international:  416-849-0833

Pass code:  6557249

The conference call replay will be available from 1 p.m. ET on May 11, 2021, until 11:59 p.m. ET on May 25, 2021.

The presentation will be available on the company’s website.

Qualified person

Scientific and technical information in this news release has been reviewed and approved by Keith Boyle, PEng, chief operating officer of the company, who is a qualified person as defined by National Instrument 43-101. Mr. Boyle is not independent of the company within the meaning of NI 43-101.

Eastern Platinum produces 490.9 oz PGMs in April

Eastern Platinum Ltd. has dispatched 199.8 dry tons of platinum group metal (PGM) concentrates containing 490.9 ounces of PGMs under the offtake agreement with Impala Platinum Ltd., within the production month of April, 2021. This marks the first full month of PGM production following the recent completion of the reconfiguration and optimization of the small-scale PGM circuit (previously the scavenger plant circuit) (circuit D).

The company completed the process upgrades to ensure a consistent production of a minimum of 200 tons of PGM concentrates per month from Circuit D. All concentrates produced reached the satisfactory quality requirements under the offtake agreement.

Diana Hu, president and chief executive officer of Eastplats, stated: “Circuit D’s first full month of production is an important breakthrough for the company. It not only created a new revenue stream in addition to the company’s chrome production but will also assist and accelerate the recommissioning of the PGM main circuit, which is expected to add a further 600 to 800 tons of PGM concentrates per month from September, a significant boost to the company’s operation and revenue growth.”

The company has also commissioned a life-of-mine design and schedule on the Zandfontein vertical shaft as the first step in evaluating and planning the restart of underground mining at the Crocodile River mine. The work is expected to be completed in the third quarter of 2021.

American Mn’s McGroarty joins CMI advisory board

Dan McGroarty, American Manganese Inc. advisory board member, has been appointed as one of three private-sector members of the U.S. Department of Energy’s (DOE) Critical Materials Institute (CMI) advisory board. Mr. McGroarty will serve a two-year term on the advisory board, which reports to CMI director Dr. Tom Lograsso.

“Dan is a tremendous asset to the American Manganese team, helping us navigate the company to becoming an industry team member of the CMI, and demonstrating for the U.S. Defense Logistics Agency AMY’s ability to solve a strategic critical mineral challenge, in our Wenden stockpile reclamation and advanced material processing bench-scale project,” said Larry Reaugh, president and chief executive officer of American Manganese. “I believe Dan’s appointment to the CMI advisory board will bring CMI valuable insight in how the private-sector’s powers of innovation can help meet the challenges of developing a strong U.S. critical materials supply chain.”

Led by the Ames Laboratory, in Iowa, CMI consists of more than 300 scientists, engineers and support staff at four national laboratories of the U.S. Department of Energy, 16 universities and 27 industrial partners. CMI was launched in 2013 as a DOE Energy Innovation Hub, charged with seeking ways to develop technologies that strengthen U.S. supply chains through source diversification, material substitution, and improved recycling and recovery.

American Manganese was accepted as a CMI industry team member in March, 2019, and participates in CMI’s lithium-ion battery disassembly, remanufacturing, and lithium and cobalt recovery project, focused on research, development and demonstration of novel methods that maximize value recovery from lithium-ion battery stacks, modules and cells by reuse, remanufacturing and materials recovery. American Manganese’s CMI project partners are Oak Ridge National Laboratory (ORNL), Idaho National Lab (INL), Purdue University and Case Western Reserve University.

Copper Fox files Schaft Creek report on SEDAR

Copper Fox Metals Inc. has filed on SEDAR a National Instrument 43-101 technical report, which includes the results of a resource estimate update for the Schaft Creek copper-gold-molybdenum-silver porphyry project located in northwest British Columbia (see news release dated March 22, 2021). The Schaft Creek project is managed through the Schaft Creek joint venture (SCJV) formed in 2013 between Teck Resources Ltd. (75 per cent) and Copper Fox (25 per cent) with Teck being the operator.

The technical report, titled “Mineral Resource Estimate Update for the Schaft Creek Property, British Columbia, Canada,” with an effective date of Jan. 15, 2021, was prepared by H. Ghaffari, MASc, PEng, and J. Huang, PhD, PEng, of Tetra Tech Canada Inc. and Michael F. O’Brien, PGeo, of Red Pennant Geosciences.

Elmer B. Stewart, president and chief executive officer of Copper Fox, stated: “The updated resource estimate forms the basis of the Schaft Creek preliminary economic assessment (PEA) that is under way and identifies opportunities to grow the project resource base. The technical report recommends a multipurpose drill program, including the collection of geological, geotechnical and metallurgical information.”


Category          Average Value           Metal Content     
                Mass        Cu        Au        Mo        Ag      CuEq          Cu        Au        Mo        Ag
                  Mt         %       g/t         %       g/t         %         Mlb       Moz       Mlb       Moz

Measured       176.4      0.32      0.22      0.01     81.46      0.48    1,261.49      1.28     71.03      8.26
Indicated    1,169.1      0.25      0.15      0.01     71.22      0.37    6,502.98      5.69     439.5    646.00
Total M+I    1,345.5      0.26      0.16      0.01     71.25      0.39    7,764.47      6.97     510.5    954.26
Inferred       343.6      0.17      0.11      0.01     30.84      0.26    1,303.07      1.18     95.50      9.28

Mineral resources are reported using the 2014 CIM definition standards.

Mineral resources are reported within a conceptual constraining pit shell that includes the following input 
parameters: metal prices of $3 per pound Cu, $1,200 per ounce Au, $10/lb Mo, $20/oz Ag and pit slope angles that 
vary from 40 to 44 degrees, metal prices are in U.S. dollars.

Metallurgical recoveries reflective of prior test work that averages:  86.6 per cent for copper, 73.0 per cent 
for gold, 58.8 per cent for molybdenum and 48.3 per cent for silver.

Mineral resources are reported using a net smelter return (NSR) cut-off of $4.31 (U.S.)/t.

Tonnes are metric tonnes, with copper and molybdenum grades as percentages, and gold and silver grades as gram 
per tonne units.

Copper and molybdenum metal content is reported in pounds and gold and silver content is reported in troy ounces.

Totals and metal content may not sum due to rounding and significant digits used in calculations.

Copper equivalent per cent was estimated using average metallurgical recoveries for copper, gold, molybdenum and 
silver and metal prices stated in this release.

Evergold to begin Golden Lion field season June 1

Evergold Corp. has set a targeted June 1 start to the field season on the Golden Lion property, located in British Columbia’s Toodoggone region. The launch of exploration on the Snoball property, located in British Columbia’s Golden Triangle to the west of Golden Lion, will follow approximately six weeks later, around July 15.

2021 exploration plans — Golden Lion property:

  • Minimum 2,500 metres of phase 2 drilling; a phase 3 program may follow, contingent on results;
  • Drilling will target a high-tenor, coincident induced polarization (IP) chargeability and resistivity response, suggestive of potentially stronger mineralization, lying directly below the GL1 Main zone, where shallow phase 1 drilling by Evergold in 2020 and historical drilling by Newmont has identified a long, broad zone of near-surface gold-silver epithermal-style mineralization extending along more than 800 metres of strike and across true widths exceeding 150 metres;
  • Programs of IP geophysics, geological mapping, prospecting, and soil and rock sampling will evaluate possible extensions along and across strike, particularly to the north toward the GL1 North Ridge target area, where work in 2020 returned high values of gold, silver and copper in soils and selected rock samples.

2021 exploration plans — Snoball property:

  • Minimum 2,000 metres of phase 2 drilling; a phase 3 program may follow, contingent on results;
  • Drilling will target a promising area of widespread strong and locally very high-grade gold, silver and pathfinder element values in outcrop and talus fines within the C zone trend at Pyramid Peak, downslope from drilling carried out in 2020;
  • As presently interpreted, the C zone is a broad, southwest-northeast-trending, epithermal-style vein system likely encompassing several variably oriented vein sets;
  • The high, mountain-top elevation of the discovery suggests that phase 1 drilling in 2020 may have just caught the top of the system.

“We are excited to have the drills turning soon, with the goal of building on the positive early-stage results of 2020 and firmly demonstrating the merit and potential of Snoball and Golden Lion,” said Kevin Keough, president and chief executive officer. “At Snoball, our objective is to tap into the core of the new high-grade vein system we drilled for the first time in 2020 and to follow it to depth, in which case we can work the topography to our advantage. At Golden Lion, where drilling has already shown the presence of a large, shallow gold zone, our immediate objective is to test the high-tenor geophysical response below last year’s drilling, which could justify subsequent drilling along and across strike. Both these projects are exciting for the near-term potential they offer, and we’re fully financed to execute.”

Andrew J. Mitchell, PGeo, vice-president, exploration, for Evergold and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information in this news release.

Oroco Resources grants options to buy 4.42M shares

Oroco Resource Corp. has granted incentive stock options to its directors, officers, management personnel and consultants to acquire an aggregate of 4,425,000 common shares in the capital of the company at an exercise price of $3.15 per share.

The options are exercisable for a three-year term, expiring on May 10, 2024, with 20 per cent vesting immediately and a further 20 per cent vesting every six months over the next two years.

The options were granted in accordance with the company’s 10 per cent rolling incentive stock option plan. As a result of these grants, the stock options issued by the company represent 5.6 per cent of its issued and outstanding capital. The grant of the options is subject to the approval of the TSX Venture Exchange.

Alpha Lithium extracts 4,540 mg/L Li from brine

2021-05-11 12:53 ET – News Release

Mr. Brad Nichol reports


Alpha Lithium Corp. has produced an excellent result from small-scale direct lithium extraction (DLE) studies, conducted by the principals of Beyond Lithium LLC, a team of renowned lithium brine processing experts.

Alpha’s first DLE investigation resulted in a lithium concentration of 4,540 mg/L utilizing raw brine from the historic legacy well, drilled by the previous owners in the Tolillar Salar.

The process utilized readily available, standard DLE-type methodologies, equipment and products resulting in very low measures of impurities such as magnesium, calcium, potassium, sulfates and boron. Further refinement of the post DLE eluate is underway, with the objective of (i) achieving an even higher lithium concentration in the future and (ii) producing samples of lithium carbonate and lithium hydroxide.

The result of 4,540 mg/L was achieved using a single pass-through reverse osmosis procedure and the results are expected to improve incrementally after subsequent trials.

Based on the strong results thus far, Alpha has expanded its investigation of the entire process flowsheet beyond the initial concentration stage and is confident that it will produce lithium carbonate and lithium hydroxide from Tolillar brine in the future. The Company plans to provide a further update and the results of lithium carbonate, and/or lithium hydroxide production in the next month.

Brad Nichol, President and CEO, commented, “Our successful concentration of brine, being the first step of the entire lithium production flowsheet, is very encouraging and definitely exceeded our expectations. We have high hopes on taking this first step to its logical conclusion, which is the production of lithium hydroxide and/or lithium carbonate. What our team has achieved in such a short period of time is incredible. We have combined ingenuity, technology and experience to demonstrate the viability of brine from the Tolillar Salar.”

Industry-wide, DLE technology development has demonstrated significant benefits over traditional evaporative techniques. Alpha’s DLE testing, to date, has focused on the (i) concentration of lithium and (ii) elimination of as many of the impurities as possible, early in the production process, with the overall objectives of:

Reducing Capital Expenditures (“CAPEX”) by reducing the reliance on massive evaporation ponds, which are historically one of the most expensive components of brine-based projects,

Increasing efficiency in lithium recoverability, as successful DLE deployment can recover up to 90% of the lithium,

Reducing Operating Expenditures (“OPEX”) through the minimization of reagents use, which would typically be transported in large quantities to site, and

Minimizing negative impacts on the environment through smaller operating footprints, fewer hazardous materials use, lesser reagents transported to site, and the reduction or elimination of evaporation ponds spread across hundreds or even thousands of hectares.

The Company previously announced (see press release dated April 1, 2021) that it has sent Lilac Solutions Inc (“Lilac”) brine samples from Tolillar Salar. The results of Lilac’s testing are still forthcoming, and the Company is eager to compare the results of Lilac’s patented ion exchange technology that facilitates production of lithium from abundant brine resources with minimal cost and ultra-low environmental footprint.

Once Phase 3 drilling is complete, all drilling, logging and flow data will be reviewed by Alpha’s independent engineering firm, Montgomery and Associates, whom have been engaged to prepare a Resource Estimate.

Azarga files Gas Hills NI 43-101 technical report

Azarga Uranium Corp. has filed a technical report supporting the National Instrument 43-101 (NI 43-101) resource estimate for its Gas Hills uranium project in Wyoming announced on March 30, 2021. The company has also engaged WWC Engineering and Roughstock Mining Services LLC to complete a preliminary economic assessment on the back of the increased resource estimate.


  • Measured and indicated uranium resources increased to 10.77 million pounds triuranium octoxide from 4.73 million pounds U3O8 (128-per-cent increase);
  • Measured and indicated ISR uranium resources total 7.71 million pounds U3O8 (72 per cent of overall measured and indicated resources);
  • Average U3O8 grade of 0.101% per cent
  • Maiden ISR resource estimate achieves significant grade and scale, and supports further advancement of the project;
  • Preliminary economic assessment under way; strong potential for Gas Hills project to become a significant satellite deposit to the company’s flagship Dewey Burdock project.

Updated mineral resource estimate — March 29, 2021

                                      (inclusive of ISR resources)
                               Measured resources  Indicated resources  Measured plus indicated    Inferred 
                                                                                      resources   resources

Tons                                      993,928            6,031,224                7,025,152     514,393
Average grade (% U3O8)                      0.103                0.072                    0.077       0.048
Average thickness (feet)                      5.4                  6.1                      6.1         6.2
Average grade thickness (GT)                0.552                0.443                    0.463       0.293
Uranium (pounds)                        2,051,065            8,714,126               10,765,191     490,072

Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.
                               Measured resources  Indicated resources        Measured plus    Inferred 
                                                                        indicated resources   resources

Tons                                      993,928            2,835,339            3,829,267     409,330           
Average grade (% U3O8)                      0.103                0.100                0.101       0.052             
Average thickness (feet)                      5.4                  4.9                  5.0         5.9               
Average grade thickness (GT)                0.552                0.491                0.502       0.310             
Uranium (pounds)                        2,051,065            5,654,545            7,705,610     427,817           

Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Both the ISR and non-ISR resources were determined using the GT contour method and met the following criteria:

  • 0.02-per-cent grade cut-off;
  • Occur within the same mineral horizon (roll front);
  • Fall within the 0.10 GT contour;
  • Extend no farther from the drill hole than the radius of influence specified for each category, that is, measured, indicated or inferred.

In addition, ISR resources that fall within the 0.20 GT contour have also been estimated in the attached table (all other calculation criteria are the same as noted above).

                            Gas Hills Project ISR Mineral Resource estimate at 0.20 GT
                               Measured resources  Indicated resources        Measured plus    Inferred 
                                                                        indicated resources   resources

Tons                                      847,570            2,143,763            2,991,333     260,544           
Average grade (% U3O8)                      0.111                0.114                0.113       0.056             
Average thickness (feet)                      5.9                  5.7                  5.8         8.4               
Average grade thickness (GT)                0.661                0.653                0.653       0.470             
Uranium (pounds)                        1,887,847            4,872,128            6,759,975     290,007           

Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Technical report

The NI 43-101 technical report titled “NI 43-101 Technical Report, Mineral Resource Report, Gas Hills Uranium Project, Fremont and Natrona Counties, Wyoming, USA,” with an effective date of March 29, 2021, for Azarga Uranium has been filed on SEDAR and Azarga Uranium’s website.

The technical report was independently prepared by Steve Cutler, PG, of Roughstock, a qualified person as that term is defined under NI 43-101. Further, the disclosure of a scientific and technical nature contained in this press release was approved by Steve Cutler, PG, of Roughstock, a qualified person as that term is defined under NI 43-101.

American Lithium closes Plateau acquisition

American Lithium Corp. and Plateau Energy Metals Inc. have completed the acquisition by American Lithium of all of the issued and outstanding common shares of Plateau by way of a statutory plan of arrangement under the provisions of the Business Corporations Act (Ontario). The Arrangement became effective as of 12:01 a.m. (Toronto time) on May 11, 2021 (the “Effective Time”), resulting in Plateau becoming a wholly-owned subsidiary of American Lithium.


Merger combines two of the largest lithium development projects globally

Optionality provided by large-scale, advanced uranium project with robust economics

Geographic & geological diversity in mining friendly jurisdictions

Go forward management and board combines deep technical expertise with global capital markets reach and a track-record of creating value for shareholders

Merger creates a leading, Americas focused developer of energy metals at a time when securing a sustainable supply of Critical Minerals is a global priority

Strong working capital with approx. $19 million in cash on closing

Simon Clarke, Chief Executive Officer & Director of American Lithium stated, “We are thrilled to complete this acquisition of Plateau, which significantly increases our portfolio of assets and expands our range of opportunities in the Americas. I would like to take this time to welcome our new colleagues from Plateau, who bring a highly complimentary skill set. Not only is this important for the continued development of the Plateau assets but also their success in producing battery grade lithium at Falchani will be directly relevant as we focus on that milestone at TLC.” Dr. Laurence Stefan, Interim CEO & Director of Plateau stated, “The merger of Plateau and American Lithium combines two major undeveloped lithium assets and

creates a development stage company with one of the largest combined lithium resources globally. The combination also secures the financial strength, capital markets expertise and shareholder support required for us to step up the development of all of our assets and build on the last decade of work undertaken, and milestones achieved, in Peru. We continue to believe that our success will position Peru as a major supplier of energy metals.”

Completion of the Arrangement

Under the terms of the Arrangement, among other things, each holder of Plateau Shares is entitled to receive 0.29 of a common share of American Lithium (each whole share an “American Lithium Share”) and 0.145 of a common share purchase warrant of American Lithium (each whole warrant an “Exchange Warrant”) for each Plateau Share held immediately prior to Effective Time (the “Exchange Ratio”). Each whole Exchange Warrant will entitle the holder to acquire one American Lithium Share at a price of $3.00 until May 11, 2024. American Lithium will use commercially reasonable efforts to list the Exchange Warrants as soon as practicable following closing of the Transaction.

Each existing Plateau Share purchase warrant will, upon the exercise thereof on or after the Effective Time in accordance with its terms, entitle the holder to acquire 0.29 of an American Lithium Share and 0.145 of an Exchange Warrant for each Plateau Share the warrant holder would have been entitled to acquire prior to the closing of the Arrangement. Existing Plateau stock options will be exchanged for an option to acquire from American Lithium the number of American Lithium Shares equal to the product of: (A) the number of Plateau Shares subject to such Plateau stock option immediately prior to the effective date of the Arrangement, multiplied by (B) 0.29 of an American Lithium Share for each Plateau Share. Each restricted share unit and deferred share unit of Plateau vested immediately prior to the Effective Time and was exchanged for one Plateau Share, and the holders thereof participated in the Arrangement as Plateau shareholders. Pursuant to the Arrangement, American Lithium acquired 127,213,511 Plateau Shares, representing 100% of the outstanding Plateau Shares.

American Lithium intends to delist the Plateau Shares from the TSX Venture Exchange as soon as practicable. American Lithium also intends to cause Plateau to apply to the relevant securities regulators for Plateau to cease to be a reporting issuer.

In connection with the Arrangement, Plateau issued to Bedrock Capital Corporation a finder’s fee equal to $600,625 payable in cash and 2,666,666 Plateau Shares and the Company issued to Axemen Resource Capital Ltd. (“Axemen”) a finder’s fee equal to $200,000 payable in cash and 867,882 American Lithium Shares. The American Lithium Shares issued to Axemen will be subject to a four month hold from the applicable date of issuance. The finder’s fees are subject to the final approval of the TSX Venture Exchange.

Go Forward Management / Board of Directors

As recently announced, Simon Clarke will be the Chief Executive Officer and a director of the Company going forward. Andrew Bowering will move from his current role as Chief Financial Officer and director to be Chairman of the Company. Michael Kobler will step down from the board of directors of American Lithium but will remain with the Company as General Manager of the US Operations. G.A.(Ben) Binninger remains an independent director and Graham Ballachey remains as VP Engineering.

From the Plateau side, Dr. Laurence Stefan will join the Company as President, Chief Operating Officer and director. Philip Gibbs will become the Chief Financial Officer and Ted O’Connor will join the board of directors and will also be Technical Advisor and Qualified Person for the Company’s projects.

Dr. Stefan, the founder of Plateau Energy Metals (formerly Macusani Yellowcake) has over 30 years of experience in the mining industry (exploration, development, mining, processing and marketing), serving as Managing Director in Peru since 2007. Dr. Stefan previously worked at Gold Fields of South Africa and JCI (Pty) Ltd. where he was involved in the beneficiation of a wide variety of solid metal/non-metal commodities. He has vast experience covering over 100 projects on 6 continents and led the discovery team for the Falchani lithium project.

Philip Gibbs, the current Chief Financial Officer of Plateau, has extensive experience with listed mining and mineral exploration companies operating in Africa and South America. Mr. Gibbs also serves as Chief Financial Officer of Cobalt BlockChain Inc. and Asante Gold Corporation.

Ted O’Connor, P.Geo, MSc. is a professional geoscientist with over 30 years of experience in the exploration industry and has been involved with Macusani Yellowcake and Plateau since shortly after inception. Previously, as Director of Corporate Development for Cameco, Ted was responsible for evaluating, directing and exploring for uranium deposits worldwide. He has successfully led new project generation from early exploration through discovery on multiple uranium projects and was also part of the discovery team for the Falchani project.

Information for Former Plateau Shareholders

In order to receive the American Lithium Shares and Exchange Warrants in exchange for Plateau Shares, Plateau shareholders who hold their Plateau Shares in physical certificates or DRS Statements, must complete, sign, date and return the letter of transmittal that was mailed to each Plateau shareholder with the meeting materials in April 2021. The letter of transmittal is also available under Plateau’s profile on SEDAR at Plateau Shares held in a trading account will update automatically to reflect the receipt of the American Lithium Shares and the Exchange Warrants, generally within two weeks of the Effective Date. For those shareholders of Plateau whose Plateau Shares are registered in the name of a broker, investment dealer, bank, trust company, trust or other intermediary or nominee, they should contact such nominee for assistance in depositing their Plateau Shares and should follow the instructions of such intermediary or nominee.

As previously disclosed in Plateau’s management information circular dated March 31, 2021 (the “Circular”), a Plateau Shareholder wishing to file a tax election under section 85 of the Income Tax Act (Canada) should consult its tax advisor. The deadline for submission of the tax election form to American Lithium is August 9, 2021. All eligible holders who wish to make a Section 85 election should give their immediate attention to this matter, and in particular should consult their tax advisors without delay.

Additional Information

For further details of the Arrangement, please see the arrangement agreement dated February 9, 2021, and Plateau’s management information circular dated March 31, 2021, each of which is available under Plateau’s profile on SEDAR at