American Lithium obtains water deal for TLC

Executive Summary

• American Lithium’s subsidiary Tonopah Lithium Corp. (TLC) signed a binding water reservation agreement with the Town of Tonopah and Tonopah Public Utilities, securing up to 1,250 gpm (≈2,000 acre‑feet/yr) for Phase 2 of the TLC lithium project.
• The agreement includes an initial $200,000 community contribution held in a restricted account and optional annual extensions ($50,000 per year) for up to seven additional years.
• TLC will fund all required water‑delivery infrastructure (wells, pipelines, storage tanks); these assets will be transferred to TPU after project closure.

Key Details

• Reserved Water Supply: 900–1,250 gallons per minute (≈1,450–2,000 acre‑feet annually), subject to TLC’s hydrology and engineering studies at its sole expense.
• Study Requirements: TLC will conduct detailed hydrology and engineering assessments in the Ralston Valley basin to confirm sustainable pumping rates and design upgraded pipelines and well fields.
• Infrastructure Commitment: If TLC elects to use TPU water, it will construct upgraded wells, pipelines, and storage tanks; all infrastructure will be transferred to TPU upon project completion.
• Community Financial Consideration:
• Initial payment of $200,000 placed in a restricted account via the Community Foundation of Northern Nevada.
• Funds may only be used for town infrastructure loans or scholarships for Tonopah High School graduates and local college students.
• Term & Extensions:
• Initial three‑year reservation term.
• Renewable up to seven additional one‑year terms at $50,000 per extension year, allowing TLC time to complete studies.
• Project Scale:
• Phase 1 target production: ~24,000 t LCE/yr.
• Phase 2 expansion target: ~48,000 t LCE/yr, positioning TLC among the largest U.S. lithium operations.
• Strategic Benefits: Secures critical water resources for Phase 2, supports community development, and reinforces TLC’s long‑term operational viability in Nevada.

Notable Quotes

“This agreement represents a significant milestone for American Lithium, ensuring the availability of critical water resources for phase 2 of the TLC project while directly supporting the town of Tonopah and Nye county.” – Alex Tsakumis, Interim CEO, American Lithium Corp.