American Lithium Corp (LIACF) stock Pulls Back on Profit Taking After The Big Jump

The American Lithium Corp (OTCMKTS:LIACF) stock had a rough time in the markets yesterday and tanked by as much as 7.5% after the company made a key announcement. On Wednesday, the company announced that it had signed a share purchase agreement with Big Smoky Holdings on Tuesday September 7.

In addition to that, such an agreement had also been signed with all the individual shareholders in Big Smoky Holdings. By of this particular agreement, American Lithium is going to acquire all the outstanding capital in Big Smoky Holdings. It was a major announcement from the company but it did not particularly seem to impress investors and that was apparent from the selloff suffered by the American Lithium stock.

In this regard, it is necessary for investors to keep in mind that Big Smoky Holdings is in control of the Crescent Dunes Project and that makes the acquisition an interesting one. The Crescent Dunes Project is spread across an area of as much as 3886 acres and more importantly, the project boasts of shallow presence of TLC lithium claystone mineralisation. Hence, the deal could well prove to be a long term positive for American Lithium and investors might consider adding the stock to their watch lists.