Mr. Chris Doornbos reports
E3 METALS' JOINT DEVELOPMENT PROJECT COMMENCES WITH INITIAL US $1.5 M CONTRIBUTION FROM LIVENT CORPORATION
E3 Metals Corp. has received a contribution from Livent Corp. for the initial $1.5-million (U.S.) in relation to the joint development agreement. This initial contribution marks the commencement of the joint development project with Livent for the technical advancement of E3 Metals' proprietary on exchange direct lithium extraction (DLE) 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.
Joint development project investment
Livent will contribute up to $5.5-million (U.S.) to 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 $5.5-million (U.S.) investment into 6,229,368 common shares in the capital of E3, representing 19.9 per cent equity ownership of E3 based on the current share structure. Should Livent elect to proceed with the conversion, Livent can appoint one member to E3's board of directors, provided Livent maintains not less than a 5-per-cent equity interest in the company. Under the agreement, should Livent not provide the entire $5.5-million (U.S.), then: i) Livent is not entitled to the conversion; ii) E3 has no obligation to return any finances contributed by Livent; iii) all E3 intellectual property and jointly developed new IP (other than improvements to Livent IP) will revert to E3. Livent has also been granted additional limited antidilution rights.
"We are thrilled to be working with Livent to advance our proprietary process and the Alberta lithium project," said Chris Doornbos, president and chief executive officer of E3 Metals. "We believe this collaboration will accelerate the advancement of the innovative technology we have developed to date. The joint development project demonstrates E3's commitment to the commercialization of lithium in Alberta."
In conjunction with the initial financing by Livent of the jointly owned and newly incorporated joint development company, and in accordance with the terms of its financial advisory agreement with Hampson Equities Inc., E3 has agreed to pay Hampson a cash fee of $119,610 (being 6 per cent of the $1.5-million (U.S.) contribution) and issue Hampson 109,935 warrants, each warrant being exercisable into a common share of E3 at a price of $1.17 per share for a period of two years from the date of issuance. The $1.17 conversion price for the warrants is based on an implied share price valuation that assumes an investment of $5.5-million (U.S.) using the current United States dollar/Canadian dollar exchange rate and the issuance of 6,229,368 shares. Notwithstanding the foregoing, E3 Metals makes no representations as to the current trading price of its shares in the public market or whether the entire $5.5-million (U.S.) investment will be made.
About E3 Metals Corp.
E3 Metals is a lithium development company with 6.7 million tonnes lithium carbonate equivalent inferred mineral resources in Alberta. Through the scale up of its proprietary ion-exchange direct lithium extraction process, E3 plans to quickly move toward the production of high-purity, battery-grade lithium products. E3 Metals combines a significant resource and innovative technology solutions that have the potential to deliver lithium to market in one of the best jurisdictions in the world.
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