E3 Lithium Announces Acquisition of Clearwater Royalty
E3 Lithium Announces Acquisition of
Clearwater Royalty
CALGARY, AB
,
Oct. 4, 2022
/CNW/ - E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX:
EEMMF),
Alberta's
leading lithium developer and Direct Lithium Extraction (DLE) technology
innovator is pleased to announce it has acquired the Clearwater Project Gross Overriding Royalty
(the "Royalty").
The Royalty was negotiated in 2016 during the original amalgamation of E3 Lithium's (E3) permits in
the Clearwater Project Area within the Bashaw District. As part of the original agreement, E3 had
the option to purchase the Royalty by
September 30, 2022
. The Royalty would have provided the
original owner with 2.25% of gross revenue from any metallic and industrial mineral production.
Based on E3's Preliminary Economic Assessment released in 2020, the value of the Royalty would
have been approximately
$8.5M
CAD per year. Using recent lithium prices, the Royalty would be
significantly higher, outlining the clear economics behind deciding to acquire the Royalty for
$0.8M
CAD.
"The purchase of this royalty outlines the confidence we have in the value and timeframe of our
project," said
Chris Doornbos
, President and CEO of E3 Lithium. "The royalty burden using today's
prices that E3 has now eliminated provides improved economics in the Clearwater Project and
significant shareholder value."
About E3 Lithium
E3 Lithium is a development company with total of 24.3 million tonnes of lithium carbonate equivalent
(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-tax
1
. Through the successful scale up its DLE technology towards
commercialization, E3 Lithium's goal is to produce high purity, battery grade lithium products. 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.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Doornbos
, President & CEO
E3 Lithium Ltd.
1: The Preliminary Economic Assessment (PEA) for the Clearwater Lithium Project NI 43-101 technical report is effective 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 July 11, 2022, identified 23.4Mt LCE (inferred). 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. 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
. 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.
SOURCE
E3 Lithium Ltd.
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For further information:
E3 Lithium - Investor and Media Relations: Robin Boschman, Director,
External Relations, [email protected], 587-324-2775
CO: E3 Lithium Ltd.
CNW 03:05e 04-OCT-22