E3 Lithium Closes Bought Deal Public Offering
Suite 1520 – 300 5th Ave SW
Calgary, AB T2P 3C4
Tel: +1 (587) 324-2775
Email: [email protected]
Website: e3lithium.ca
E3 Lithium Closes Bought Deal Public Offering
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
CALGARY, ALBERTA, June 8 , 2023 – E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3
Lithium” or “the Company ,” Alberta’s leading lithium developer and extraction technology innovator, today
announced that it has closed the “bought deal” public offering as previously announced on May 30, 2023, for
gross proceeds of C$5,623,837 (the “Offering”), including partial exercise of the overallotment option for
proceeds of C$623,837.
Details of the Offering
The Offering was led by Red Cloud Securities Inc. and included Eight Capital (collectively, the “Underwriters”),
with institutional participation accounting for the majority of the Offering. There was strong participation from
E3 Lithium directors, officers and staff which represented C$312,499 of the total Offering.
Pursuant to the underwriting agreement, the Underwriters received a cash commission of $318,080, equal to
6.0% of the gross proceeds less insider participation raised under the Offering , and also received 141,369
non-transferable broker warrants of the Company ( the “Broker Warrants”) equal to 6.0% of the number of
gross shares issued less insider participation . Eac h Broker Warrant entitles the holder to purchase one
common share of the Company at a price of C$2.25 for a period of 24 months from the date of issuance.
Under the Offering, the Company issued 2,499,483 common shares at a price of C$2.25 per common share
and currently has 67,518,665 shares outstanding.
Use of Proceeds
E3 Lithium completed the Offering with the view of protecting the balance sheet and having a strong working
capital balance entering 2024. The Company’s plans for the rest of 2023 remain among the largest and most
ambitious E3 Lithium will complete since inception. As referenced in the Prospectus Supplement(1) filed on
June 1, 2023 , the estimated expenditures heading into 2024 is approximately C$20.9M, which does not
include the receipt of any funds from awarded government grants, estimated at approximately C$7.3M over
the next 12 months. Any government funds received and remaining at the end of 2023 will be put towards the
Feasibility Study and general working capital in 2024. A summary of the use of proceeds is outlined below:
Expected Expenditure
Estimated Amount to
be Expended
Pre-Feasibility Study $3.0 million
Lithium Extraction Field Pilot $7.0 million
Lithium Processing $1.0 million
Reservoir Development $1.0 million
DLE Commercialization and Development $1.0 million
2024 Feasibility Study $3.0 million
General working capital $4.9 million
Total $20.9 million
Suite 1520 – 300 5th Ave SW
Calgary, AB T2P 3C4
Tel: +1 (587) 324-2775
Email: [email protected]
Website: e3lithium.ca
Certain insiders of the Company acquired common shares of the Company pursuant to the Offering and as
such, a portion of the Offering is considered a related party transaction within the meaning of TSX Venture
Exchange Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special
Transactions (“MI 61-101”). The Company is relying upon the exemption from the formal valuation and
minority shareholder approval requirements of MI 61-101 as neither the fair market value of the common
shares subscribed for, nor the consideration paid for the common shares, exceeds 25 per cent of the
Company's market capitalization. The Company did not file a material change report more than 21 days before
the expected closing of the Offering because the details of the participation therein by related parties of the
Company were not settled until shortly prior to closing of the Offering and the parties wished to close on an
expedited basis for business reasons.
Note 1: The Prospectus Supplement dated June 1, 2023 is available under the Company’s SEDAR profile at
www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Doornbos, President & CEO
E3 Lithium Ltd.
E3 Lithium - Investor and Media Relations
Greg Foofat
Manager, Investor Relations
587-324-2775
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).
Suite 1520 – 300 5th Ave SW
Calgary, AB T2P 3C4
Tel: +1 (587) 324-2775
Email: [email protected]
Website: e3lithium.ca
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, fluctuati ng 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 i n 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.