American Lithium has signed an agreement to transfer the ownership of its Macusani Uranium project to Friday’s Dog Holdings, which will be renamed International Uranium.

Under the terms of the agreement, American Lithium will transfer ownership of Macusani Uranium, its Peruvian subsidiary that holds the Macusani project, to International Uranium.

When the transaction is completed, International Uranium will obtain ownership and control over the Macusani project and will have at least C$5m ($3.75m) in available cash.

International Uranium will have around 128,862,078 outstanding common shares on a pro forma basis and will raise C$15m ($11.24m) through concurrent financing.

The concurrent financing will be led by Eight Capital, National Bank Financial, and a syndicate comprising Canaccord Genuity, Clarkson Securities and TD Securities.

American Lithium chief executive officer Simon Clarke said: “We are pleased to move forward with spinning out this large-scale and advanced-stage uranium project for the benefit of our shareholders.

“The Macusani Project is one of the world’s largest undeveloped uranium projects whose ease of extraction, “near surface” and high purity characteristics position it with the potential to be one of the lowest cost sources of uranium globally.

Through the transaction, American Lithium aims to recognise the market value of its development-stage Macusani project for the benefit of its shareholders

The transaction will create an independent, well-financed, uranium-focused, publicly traded company, International Uranium, which will own the large-scale uranium project.

American Lithium said that International Uranium will benefit from its work completed at the Macusani Project, including PEA, advanced metallurgy and drill permits.

Furthermore, the transaction will help focus on advancing its two premier lithium projects, TLC in Nevada, and Falchani in Peru, said the lithium company.

Clarke added: “With mounting concerns around energy security and climate change, Macusani is strategically located in the Americas, and we believe it can play a large role in the transition to zero-emission base-load electricity generation that the world requires.

“To fully realize its potential and to provide maximum value to our shareholders we believe it needs to be in a stand-alone public company.”