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E3 Metals Corp
Symbol C : ETMC
Shares Issued 25,073,985
Close 2019-09-17 C$ 0.53
Recent Sedar Documents

E3 Metals, Livent to work on Li extraction process

2019-09-18 07:15 ET - News Release

Mr. Chris Doornbos reports

LIVENT CORPORATION TO CONTRIBUTE UP TO US$ 5.5 MILLION TO ADVANCE E3 METALS' DIRECT LITHIUM EXTRACTION PROCESS ON THE ALBERTA LITHIUM PROJECT

E3 Metals Corp. has entered into a joint development agreement with a wholly owned subsidiary of Livent Corp. to advance E3 Metals' proprietary ion-exchange direct lithium extraction process. The ultimate goal of the agreement is to develop a process to produce battery quality lithium products from the lithium enriched brines located in the Leduc formation in Alberta.

E3 Metals' Alberta project boasts a total of 6.7 million tonnes lithium carbonate equivalent (LCE) inferred mineral resources (1) within the Leduc reservoir formation in Alberta.

Livent is the world's largest pure-play lithium producer, well known for being one of the lowest cost producers of lithium carbonate. With facilities across the globe, Livent holds technical expertise in the extraction and production of various lithium products.

Under the agreement, Livent will deploy its technical expertise to assist in the accelerated advancement of E3's lithium extraction process toward commercialization. Livent will contribute up to $5.5-million (U.S.) to the joint development project, with an initial $1.5-million (U.S.) contribution to be made shortly upon closing of the agreement and following TSX Venture Exchange acceptance.

Agreement highlights

  • Joint development project: E3 Metals and Livent will jointly accelerate the development of E3's proprietary direct lithium extraction process and overall lithium production processes through two stages of development:
    • Ion exchange (IX) project: The first stage will include finalizing the commercial readiness of the ion exchange sorbent. The sorbent is used to produce a high-purity lithium concentrate from Alberta brine.
    • Pilot plant project: The second stage will include the construction and operation of a custom pilot plant deployed in Alberta for testing the IX process and further processing of the concentrate into a saleable lithium product at a larger scale. The result of this stage will be a detailed process overview and economic development plan for E3's Alberta lithium project.
  • Investment agreement: Livent will contribute up to $5.5-million (U.S.) to finance the joint development project. On satisfaction of the full $5.5-million (U.S.) in financing and completion of the joint development project, for a period of 90 days, Livent will have the option to convert its investment into 6,229,368 common shares in the capital of E3, representing 19.9 per cent of E3 based on the current share structure. Livent has been granted additional anti-dilution rights. In the event Livent elects to proceed with the conversion, Livent can appoint one member to its board of directors, provided Livent maintains not less than a 5-per-cent equity interest.

"We are thrilled to be working with Livent to advance our proprietary ion exchange process and the Alberta lithium project," said Chris Doornbos, president and chief executive officer of E3 Metals. "There are few companies in the world that have the lithium production expertise Livent possesses. We believe this collaboration will accelerate the advancement of the innovative technology we have developed to date. This collaboration with Livent, and the joint development project, demonstrates E3's commitment to the commercialization of lithium in Alberta; we are excited to begin working with Livent immediately."

Paul Graves, president and chief executive officer of Livent, commented: "We look forward to providing our expertise to help E3 Metals accelerate the advancement of its lithium extraction technology and supporting its broader ambitions in Alberta. Livent has been a pioneer in the lithium industry for over 60 years. Collaborating with E3 Metals provides an opportunity to build on our rich heritage of innovation and to bring exciting new possibilities to our customers around the world."

In consideration of facilitating the introduction of E3 Metals and Livent, as well as providing substantial assistance to E3 Metals in negotiating and finalizing the agreement, E3 Metals will pay a consulting fee to Hampson Equities Ltd. (HEL) comprising 6 per cent cash and 6 per cent warrants based on the capital contributions of Livent to the joint development project. The warrants will be exercisable for a period of two years at a price equal to the market price of E3 at the time of each warrant issuance.

The agreement and consulting fee to HEL are subject to a number of conditions, including obtaining requisite TSX Venture Exchange approval.

About E3 Metals Corp.

E3 Metals is a lithium development company with 6.7 million tonnes lithium carbonate equivalent (LCE) inferred mineral resources (1) in Alberta. Through the commercialization of its proprietary ion exchange lithium extraction technology, E3 plans to quickly move toward the production of high-purity, battery grade, lithium products.

E3 Metals combines a significant in situ resource and innovative technology solutions that have the potential to deliver lithium to market in one of the best jurisdictions in the world. The development of this lithium resource through brine production is a well-understood venture in Alberta, where this brine is currently being produced to surface through extensive oil and gas development.

(1) E3 Metals has released information on three National Instrument 43-101 technical reports totalling a resource of 6.7 million tonnes LCE. The Central Clearwater Resource Area (CCRA) Technical Report, identifying 1.9 Mt LCE (inferred), is dated effective Oct. 27, 2017, and the North Rocky Resource Area (NRRA) Technical Report was dated effective Oct. 27, 2017, and identifies 900,000 Mt LCE (inferred). A third report for the Exshaw West resource area (EWRA) identifies 3.9 Mt LCE (inferred) and was filed on June 15, 2018, effective June 4, 2018. All reports are available on SEDAR.

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