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AMLM Q3 Loss Widens, Quebec Project Sale Looms
AMLM ended June with $50K cash; the LOI to sell Piscau-North for $6M in stock and $5.5M financing could reshape its balance sheet. CEO: 'transformational'.
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American Lithium Minerals posted a net loss of $155,449 for the fiscal third quarter ended June 30, wider than the $26,768 loss a year earlier. The exploration-stage miner added gold and silver assets during the period and signed a letter of intent to sell its Piscau-North polymetallic project in Quebec.
Total assets reached $18.7 million as of June 30, with stockholders' equity of $17.7 million. Cash stood at $50,404, compared with a negative $10 balance at the start of the fiscal year. Operating expenses jumped to $135,983 from $12,660, driven by $50,513 in professional fees and higher interest expense.
The May 29 LOI involves an unnamed Canadian publicly traded company acquiring AMLM's Piscau-North Polymetallic Project in Quebec. In exchange, AMLM would receive 20 million shares of the purchaser at a deemed price of $0.30 each, for a total consideration of $6 million. The deal includes a concurrent financing: 5 million units at $0.30 per unit, raising $1.5 million, and 10 million flow-through shares at $0.40 per share, raising $4 million. The purchaser would use the proceeds to advance the project, while AMLM would hold a stake in the buyer.