E3 Metals Announces $3,000,000 Private Placement
E3 Metals Announces $3,000,000 Private
Placement
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA
ONLY AND IS NOT FOR
DISSEMINATION IN
THE UNITED STATES
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NEWSWIRE SERVICES/
TSXV: ETMC
FSE:
OU7A
OTC:
EEMMF
CALGARY
,
Nov. 20, 2019
/CNW/ - E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTC:
EEMMF) (the "Company" or "E3 Metals") is pleased to announce a non-brokered private placement
(the "Offering") of up to 7,500,000 units ("Units") of the Company at a price of
$0.40
per Unit for
gross proceeds of up to
$3,000,000
. Each Unit is comprised of one common share (a "Share") and
one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant
entitles the holder to purchase one common share of the Company (each a "Warrant Share") at a
price of
$0.60
per Warrant Share for a period of 2 years and 6 months from closing (the "Expiry
Date"). If, at any time between the date that is six months from the Closing Date and the Expiry
Date, the closing price of the Common Shares on the TSXV is equal to or greater than
$1.00
for 10
consecutive trading days, then the Corporation may, at is sole option, elect to provide notice (the
"Acceleration Notice") to the holders of the Warrants by news release that the Warrants will expire
at
4:00 p.m. (pacific standard time)
on the date that is 30 days from the date of the Acceleration
Notice (the "Accelerated Expiry Date"). In such instance, all Warrants that are not exercised prior to
the Accelerated Expiry Date shall expire on the Accelerated Expiry Date.
In connection with the Offering, the Company has agreed to pay finder's fees to certain finders of
6% of the gross proceeds derived from investors identified by such finders under the Offering, to be
paid at closing out of the gross proceeds raised from the Offering. As additional consideration, the
Company has agreed to grant Share purchase warrants (the "Finders' Warrants") entitling the
finders to subscribe for up to that number of Shares equal to 6% of the Units sold to purchasers
identified by the finders under the Offering. Subject to regulatory approval, each Finder's Warrant
will be exercisable to acquire one Share of the Company at a price of
$0.60
for a period of 2 years
and 6 months after the closing date of the Offering. The Shares, Warrants and Finder's Warrants
will be subject to a resale restriction for a period of four months plus one day from closing of the
Offering.
The net proceeds received by the Company from sale of the Units will be used for reservoir testing
and analysis, advancing towards the development of a pilot plant and for general corporate
purposes.
About E3 Metals Corp.
E3 Metals is a lithium development company with 6.7 million tonnes lithium carbonate equivalent
(LCE) inferred mineral resources
1
in
Alberta
. Through the scale up of its proprietary ion exchange
direct lithium extraction process, E3 plans to quickly move towards the production of high purity,
battery grade, lithium products.
E3 Metals combines a significant resource and innovative technology solutions that have the potential
to deliver lithium to market in one of the best jurisdictions in the world. The development of this
lithium resource through brine production is a well-understood venture in
Alberta
, where this brine is
currently being produced to surface through extensive oil and gas development. For more
information about E3 Metals, visit
www.e3metalscorp.com
.
ON BEHALF OF THE BOARD OF DIRECTORS,
Chris Doornbos
, President & CEO
E3 METALS CORP.
Chris Doornbos
(P.Geo), CEO and Director of E3 Metals Corp., is a Qualified Person as defined by
NI 43-101 and has read and approved the technical information contained in this announcement.
1: E3 Metals has released information on three 43-101 Technical Reports totaling a resource of 6.7
Mt LCE. The Central Clearwater Resource Area (CCRA) Technical Report, identifying 1.9Mt LCE
(inferred), is dated effective
October 27, 2017
, and the North Rocky Resource Area (NRRA)
Technical Report was dated effective
October 27, 2017
, identifies 0.9Mt LCE (inferred). A third
report for the Exshaw West Resource Area (EWRA), identifies 3.9Mt LCE (inferred) and was filed
on
June 15th
2018, effective
June 4th
2018. All reports are available on SEDAR (
www.sedar.com
)
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.
This news release includes certain forward-looking statements concerning the potential of the
Company's projects and technology, 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.
SOURCE
E3 Metals Corp.
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For further information:
205 - 227 10th St NW, Calgary, AB T2N 1V5, +1 (587) 324-2775;
[email protected]; e3metalscorp.com
CO: E3 Metals Corp.
CNW 17:00e 20-NOV-19