E3 Lithium Announces $5.0 Million Bought Deal Public Offering
E3 Lithium Announces $5.0 Million Bought Deal Public Offering
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
CALGARY, Alberta--(BUSINESS WIRE)--May 30, 2023--E3 LITHIUM LTD. (TSXV: ETL)
(FSE: OW3) (OTCQX: EEMMF), “E3” or “the Company,” Alberta’s leading lithium developer
and extraction technology innovator, today announced that it has entered into an agreement with
Red Cloud Securities Inc. to act as lead underwriter and sole bookrunner on behalf of a syndicate
of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have
agreed to purchase for resale 2,222,222 common shares of the Company (each, an “Offered
Share”) at a price of C$2.25 per Offered Share (the “Offering Price”) on a “bought deal” basis
for gross proceeds of C$5,000,000 (the “Underwritten Offering”).
The Company has granted to the Underwriters an option (the “Over-Allotment Option”, and
together with the Underwritten Offering, the “Offering”), exercisable for a period of 30 days
after and including the closing date of the Offering, to purchase for resale up to an additional
333,333 Offered Shares at the Offering Price to raise additional gross proceeds of up to
C$750,000 to cover over-allotments, if any, and for market stabilization purposes.
The net proceeds from the Offering will be used to for general corporate purposes, and towards
the advancement of the Clearwater Project.
The Offered Shares will be sold by way of a prospectus supplement to be filed in all of the
provinces of Canada, other than Québec, to supplement the Company’s short form base shelf
prospectus dated April 18, 2022. The Offered Shares may also be sold in the United States on a
private placement basis pursuant to one or more exemptions from the registration requirements
of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and in such
other jurisdictions outside of Canada and the United States, in each case in accordance with all
applicable laws provided that no prospectus, registration statement or similar document is
required to be filed in such jurisdiction.
The Offering is scheduled to close on or about June 8, 2023 and is subject to certain conditions
including, but not limited to, the receipt of all necessary approvals, including the approval of the
TSX Venture Exchange.
The Offered Shares have not been and will not be registered under the U.S. Securities Act and
may not be offered or sold in the United States absent registration or an applicable exemption
from the registration requirements under the U.S. Securities Act and applicable states securities
laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Doornbos, President & CEO
E3 Lithium Ltd.
About E3 Lithium
E3 Lithium is a development company with a total of 16.0 million tonnes of lithium carbonate
equivalent (LCE) Measured and Indicated and 0.9 million tonnes LCE Inferred mineral
resources1 in Alberta. As outlined in E3’s Preliminary Economic Assessment, the Clearwater
Lithium Project has an NPV8% of USD 1.1 Billion with a 32% IRR pre-tax and USD 820
Million with a 27% IRR after-tax1. E3 Lithium’s goal is to produce high purity, battery grade
lithium products to power the growing electrical revolution. With a significant lithium resource
and innovative technology solutions, E3 Lithium has the potential to deliver lithium to market
from one of the best jurisdictions in the world.
1: The Preliminary Economic Assessment (PEA) for the Clearwater Lithium Project NI 43-101
technical report is amended Sept 17, 2021. The mineral resource NI 43-101 Technical Report for
the North Rocky Property, effective October 27, 2017, identified 0.9Mt LCE (inferred). The
mineral resource NI 43-101 Technical Report for the Bashaw District Project, effective March
21, 2023, identified 16.0Mt LCE (measured & indicated). All reports are available on the E3
Lithium’s website (e3lithium.ca/technical-reports) and SEDAR (www.sedar.com).
Forward-Looking and Cautionary Statements
This news release includes certain forward-looking statements as well as management’s
objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified
by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar
words referring to future events and results. In particular, this news release contains forward-
looking information pertaining to the Offering and the proposed use of proceeds therefrom.
Forward-looking statements are based on the current opinions and expectations of management.
All forward-looking information is inherently uncertain and subject to a variety of assumptions,
risks and uncertainties, including the speculative nature of mineral exploration and development,
fluctuating commodity prices, the effectiveness and feasibility of emerging lithium extraction
technologies which have not yet been tested or proven on a commercial scale or on the
Company’s brine, competitive risks and the availability of financing, as described in more detail
in our recent securities filings available at www.sedar.com. Factors that could cause actual
results to differ materially from such forward-looking information include, but are not limited to,
changes in the state of equity and debt markets, delays in obtaining required regulatory
approvals, failure to satisfy closing conditions in respect of the Offering and other risks and
uncertainties involved in the mineral exploration and development industry. Forward-looking
information in this news release is based on the opinions and assumptions of management
considered reasonable as of the date hereof, including, but not limited to, the assumption that all
conditions precedent to the completion of the Offering (including the receipt of all requisite
regulatory approvals) will be satisfied in a timely manner; and general business and economic
conditions will not change in a materially adverse manner. Actual events or results may differ
materially from those projected in the forward-looking statements and we caution against placing
undue reliance thereon. We assume no obligation to revise or update these forward-looking
statements except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Contacts
E3 Lithium - Investor and Media Relations
Greg Foofat
Manager, Investor Relations
587-324-2775