The agreement will see Friday's Dog Holdings -another TSXV-listed company- acquire the uranium deposit. In honour of its new focus, Friday's Dog will change its name to International Uranium.

"The company aims to recognise the market value of the advanced, development stage Macusani project for the benefit of its shareholders by creating an independent, well-financed, uranium-focused, publicly traded company, International Uranium, which will drive this large-scale uranium project forward through feasibility and beyond," the company said.

The need to decarbonise and a renewed interest in nuclear energy continue to support the uranium price in 2023. The current per pound spot price for U3O8 is US$55.50, a US$6 increase from mid-March.

"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," said Simon Clarke, chief executive at American Lithium.

Clark explained that the stand-alone company is needed and timely to achieve the project's full potential and provide value to shareholders.

"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," he said.

After the deal is finalised, American Lithium will focus on advancing its two "premier" lithium projects, the TLC in Nevada and Falchani in Peru.