Each unit will comprise one common share and one common share purchase warrant, the company said in a statement. Each warrant will entitle the holder to buy one common share at 40 Canadian cents per share for a period of 24 months from the closing date.
The company can choose to increase the size of the placement, depending on market conditions.
American Lithium said it may also pay a finder's fee with respect to the issue and sale of some or all of the units. The fee will not be more than an 8% cash payment.
The securities issued under the private placement will be subject to a four-month hold period, the company added.