The decision to buy more land followed a strategic review of its existing property portfolio in Nevada.
American Lithium said Fish Lake Valley is a highly prospective and largely undeveloped lithium brine basin.
The company has entered into an agreement to acquire an additional 3,575-acre parcel in the valley, comprised of 167 contiguous claims known as The Gap-Lode project.
The Gap Lode project overlies 2,480 acres of public land, is adjacent to an existing 1,094-acre claim block and is prospective for lithium deposits of several types, American Lithium said.
Principal among these types is lithium claystone, with several sub-types recognized in initial due diligence.
The company intends to pay for the acquisition through the issuance of 5mln shares to the vendor.
Assuming the transaction is completed, the company intends to commence an integrated geologic and geochemical study of the project to identify potential target zones and relative lithium concentrations in those zones. This will allow the company to prioritise targets for three-dimensional testing, such as auger drilling, trenching and excavation.
Amercian Lithium also intends to conduct a detailed analysis of data from historical geothermal exploration in the area.
Shares in American Lithium rose 5.6% to C$0.75 on the news.