The TSX Venture Exchange has accepted for filing documentation relating to a unanimous shareholder agreement dated Sept. 17, 2019, among E3 Metals Corp., FMC Lithium USA Corp. (Livent) and 2216747 Alberta Ltd. (Devco), pursuant to which the company and Livent formed a joint venture subsidiary (Devco), which is owned on a 50/50 basis by the company and Livent, and the parties will collaborate to develop low-cost lithium extraction technology using both Livent's and the company's intellectual property, resources and team members. Under the terms of the agreement, Livent has agreed to finance the project in an amount up to $5.5-million (U.S.), including an initial tranche of $1.5-million (U.S.).
Pursuant to a financial advisory consulting agreement dated April 26, 2018, as amended on Sept. 17, 2019, between Hampson Equities Ltd. (HEL) and the company, a finder's fee comprising 6 per cent in cash and 6 per cent in warrants is payable to HEL based on the total amount of the project financing, if and when paid. In connection with the payment of the initial financing, 101,935 common share purchase warrants of the company exercisable at a price of $1.17 per share until Oct. 10, 2021, were issued to HEL. A cash payment of $90,000 (U.S.) is also payable to HEL in connection with the payment of the initial financing.
The exchange has been advised by the company that the initial financing was advanced on Oct. 10, 2019. The exchange's acceptance at this time applies to 1,698,918 common shares of the company at a price of $1.17 per share in connection with the payment of the initial financing, which shares are reserved for issuance in the event Livent elects to proceed with its right to convert its Devco ownership into common shares of the company after financing the full project financing (in accordance with the terms of the agreement), as well as the 101,935 finder's warrants and $90,000 (U.S.) cash payment payable to HEL. Any further issuance of securities of the company pursuant to the agreement is subject to further exchange review and acceptance.
Insider/pro group participation: none
For further information, refer to the company's news releases dated Oct. 10, 2019, Sept. 30, 2019, and Sept. 18, 2019, which are available under the company's profile on SEDAR.
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