Back in November of last year, the lithium explorer said it would be acquiring a further 42,000 acres of prospective lithium brine and clay exploration land in the Silver State.
It had planned to finance the acquisition through a proposed C$3mln share placing which also now been scrapped.
Instead, American Lithium wants to focus on its existing Fish Lake Valley exploration project in Nevada.
The company is now looking to raise up to C$1.5mln through the placing of 10mln shares at C$0.15 a pop.
Each of these units will come with one warrant which gives the holder the right to buy an additional share for C$0.30 for 18 months after the placing has closed.
The warrants will be subject to accelerated expiry in the event the 21-day volume-weighted average closing price of the company’s common shares on the TSX Venture Exchange exceeds 45 cents.
American Lithium said it will use the cash to fund further exploration and development at Fish Lake, as well as for general working capital.
The stock closed at C$0.20 on Tuesday.
Story by ProactiveInvestors