Mr. Chris Doornbos reports
E3 METALS CORP. CLOSES FINANCING AND BEGINS WORK ON BRINE PRODUCTION PLANNING
E3 Metals Corp. has successfully closed the second tranche of its non-brokered private placement financing announced on Nov. 20, 2019. Under the offering, the company has now issued a total of 5,272,400 units of the company, including 2,267,900 units issued on the first tranche, which closed Dec. 18 2019, at a price of 40 cents per unit for a total gross proceeds of $2,108,960. Each unit comprises one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share at an exercise price of 60 cents for a period of 30 months following the date of issuance. E3 Metals now has 30,477,400 common shares issued and outstanding. Securities under this tranche 2 are subject to a four-month hold period from their date of issue. Commissions comprising $18,000 cash and 45,000 broker warrants were issued in connection with the tranche 2 closing. Broker warrants issued carry the same terms as the warrants.
Further to the company's press release of Nov. 20, 2019, E3 Metals wishes to advise that it will not invoke the acceleration provisions of the warrants under either the tranche 1 or tranche 2 closing of the offering.
The company plans to deploy the funds raised to continue the development of the reservoir and advance the brine production plan. The company is actively derisking its project by making large strides in commercial development in Alberta. This work, combined with the company's proprietary direct lithium extraction technology in collaboration with Livent under the joint development agreement, will fast-track the company's development. The company will keep the market informed as the project development work progresses, and the economic viability of the overall project is established.
"Direct lithium extraction technologies are attracting increased investor attention as a sustainable, scalable and economic process to contribute to the anticipated massive increase in lithium is being forecasted by 2030. Since signing our joint development agreement with Livent Corp. (the lithium industry's fifth-largest producer and technological leader), last September, E3 Metals has been progressing rapidly toward proving out its proprietary technology and moving forward with constructing a pilot plant targeted to commence operating in 2021," commented Chris Doornbos, E3 Metals' chief executive officer.
About E3 Metals Corp.
E3 Metals is a lithium development company with a 6.7-million-tonne (1) lithium carbonate equivalent (LCE) inferred mineral resource in Alberta. E3 Metals is currently advancing its proprietary ion exchange direct lithium extraction (DLE) process in partnership with Livent under a joint development agreement. E3 Metals also continues to work with partners at the University of Alberta and at GreenCentre Canada.
Chris Doornbos, PGeo, chief executive officer and director of E3 Metals, is a qualified person as defined by National Instrument 43-101 and has read and approved the technical information contained in this announcement.
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