American Lithium's Water Agreement Supports Major Project Advances
American Lithium Secures Essential Water Reservation Agreement
American Lithium Corp. (TSXV: LI, OTCQX: AMLIF) has recently made a significant stride in its operations by signing a Water Reservation Agreement with the local authorities, which will play a crucial role in the progress of its TLC Project. This agreement, forged with the Town of Tonopah and Tonopah Public Utilities, allows the company to utilize existing water rights essential for both phases of the project.
Understanding the Water Reservation Agreement
The agreement allows for the reservation of water supply ranging from 900 to 1,250 gallons per minute, equating to approximately 1,450 to 2,000 acre-feet annually. This commitment, however, is conditional on hydrology and engineering studies that American Lithium will undertake at its expense, ensuring sustainable extraction methods.
Hydrology and Engineering Studies Initiative
Alongside the water supply reservation, American Lithium aims to conduct thorough studies in the Ralston Valley Basin. These studies are aimed at confirming feasible pumping rates and setting specifications for any necessary infrastructure upgrades like pipelines and well fields.
Infrastructure Development Commitment
Should American Lithium opt to utilize the water supply from the Tonopah utilities, it commits to constructing necessary improvements for water delivery. This includes building upgraded wells, pipelines, and storage tanks. After the project concludes, all these advancements will be handed over to the public utilities, ensuring community benefits long after project operations cease.
Community Contributions and Benefits
An integral part of the Water Reservation Agreement is the financial consideration. American Lithium has pledged an initial payment of USD $200,000, which will be safeguarded for community use. This fund will be available for infrastructure projects within the Town of Tonopah or to support scholarships for local high school graduates. Such initiatives deepen American Lithium's commitment to fostering local relationships.
The TLC Project: A Vision for U.S. Lithium Production
The TLC Project, located near Tonopah, is recognized as one of the largest lithium-bearing claystone sites in North America. The project unfolds in two phases:
- Phase 1: An expected production rate of approximately 24,000 tonnes per year of lithium carbonate equivalent (LCE).
- Phase 2: Scaling up to a projected 48,000 tonnes per year of LCE, strategically positioning American Lithium among the leading lithium operations in the United States.
Strategic Location and Workforce
With its prime location near essential infrastructure and a skilled workforce, the TLC Project is well-poised to support the growing demand for lithium, especially as battery manufacturing continues to expand in the U.S. Southwest.
Statement from Leadership
Alex Tsakumis, the Interim CEO of American Lithium, remarked on the significance of this agreement, stating that it not only secures crucial water resources necessary for project development but also enhances the company’s relationship with the Town of Tonopah. The financial contributions are aimed at providing tangible benefits for the local community in infrastructure and education.
About American Lithium
American Lithium is at the forefront of developing significant lithium projects, including the TLC claystone project in Nevada. It also oversees critical mining projects such as the Falchani hard rock lithium project and the Macusani uranium deposit in Peru. These projects have undergone extensive preliminary evaluations and possess considerable potential for expansion, enjoying robust support within their local communities.
For more inquiries, reach out to American Lithium at info@americanlithiumcorp.com or explore the website www.americanlithiumcorp.com.
Frequently Asked Questions
What does the Water Reservation Agreement entail?
The agreement allows American Lithium to reserve a specific amount of water for their TLC Project, essential for its development and community initiatives.
How will the agreement benefit the Town of Tonopah?
The agreement includes financial contributions that will support local infrastructure and scholarships for residents, enhancing community development.
What is the production capacity of the TLC Project?
Phase 1 of the TLC Project aims for 24,000 tonnes per year of lithium carbonate equivalent, while Phase 2 targets 48,000 tonnes per year.
What studies will American Lithium conduct?
American Lithium will carry out hydrology and engineering studies to determine sustainable water extraction practices and necessary infrastructure upgrades.
How does this agreement support American Lithium's future?
The agreement secures vital resources for project development, reinforcing the company's commitment to sustainable practices and local partnerships.
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