E3 Metals Announces C$6.7 Million Brokered Private Placement Offering
E3 Metals Announces C$6.7 Million Brokered
Private Placement Offering
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
CALGARY, AB
,
Nov. 19, 2020
/CNW/ - E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTC:
EEMMF) (the "Company" or "E3 Metals"), an emerging lithium developer and leading lithium
extraction technology innovator, today announced that it has entered into an agreement with
Canaccord Genuity Corp. to lead a brokered private placement of units of the Company (the
"Units"), in syndicate with Mackie Research Capital Corp. ("MRCC"), of up to
C$6.7M
at a price of
C$1.10
per Unit.
Canaccord Genuity Corp will act as lead manager and sole bookrunner (the "Lead Agent"), on its
own behalf and on behalf of a syndicate of agents including MRCC (together with the Lead Agent,
the "Agents") in connection with a commercially reasonable private placement of Units at a price of
C$1.10
per Unit (the "Offering Price") for gross proceeds of up to
C$6,700,000
(the "Offering").
Each Unit will be comprised of one common share of the Company (a "Common Share") and one
half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall
be exercisable to acquire one Common Share (a "Warrant Share") at a price of
C$2.00
per Warrant
Share for a period of 24 months from the closing of the Offering.
The Agents have been granted an option (the "Agents' Option") to offer for sale up to an additional
1,218,181 Units at the Offering Price for additional gross proceeds of up to
C$1,340,000
, which
Agents' Option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of
the Offering.
The Company has agreed pay the Agents a cash commission of 7% of the gross proceeds of the
Offering, including proceeds received from the exercise of the Agents' Option. Further, the Company
will issue to the Agents broker warrants entitling the Agents to purchase that number of Units that is
equal to 7% of the aggregate number of Units issued by the Company under the Offering (including
upon exercise of the Agents' Option), exercisable at the Offering Price for a period of 24 months.
Cash consideration will be reduced to 2.0% for President's List subscriptions, and no broker
warrants shall be issuable in connection with President's List subscriptions.
The Company intends to use the net proceeds from the Offering to finance the development of the
Company's Clearwater Lithium Project, including the development of the Pilot Plant. This will entail
production testing and the development of the detailed Aquifer Management Plan and the production
of lithium hydroxide from E3's Li-IX solution, in coordination with the Joint Development Agreement
funded by Livent Corp. The net proceeds will also be used for general working capital.
The securities to be issued under the Offering will be offered by way of private placement in (i)
certain of the provinces of
Canada
, (ii)
the United States
and (iii) such other jurisdictions as may be
determined by the Company, in each case, pursuant to applicable exemptions from the prospectus
requirements under applicable securities laws. The Offering remains subject to approval of the TSX
Venture Exchange, and the Units to be issued under the Offering will have a hold period of four
months and one day from completion of the Offering.
About E3 Metals Corp.
E3 Metals is a lithium development company with 6.7 million tonnes of lithium carbonate equivalent
(LCE) inferred mineral resources in
Alberta
and an after-tax NPV
8%
on its Clearwater Lithium
Project of
USD 1.1B
with a 32%
1
IRR. E3 Metals is currently advancing its proprietary direct lithium
extraction (DLE) process in partnership with Livent Corporation (NYSE:LTHM), a global leader in
lithium production, under a joint development agreement. Through the successful scale up its DLE
process towards commercialization, E3 Metals' goal is to produce high purity, battery grade, lithium
products. With a significant lithium resource and innovative technology solutions, E3 Metals has the
potential to deliver lithium to market from one of the best jurisdictions in the world. E3 Metals also
continues to work with partners at the
University of Alberta
and at GreenCentre Canada. For more
information about E3 Metals, visit
http://www.e3metalscorp.com
.
1: A summary of the Clearwater Lithium Project PEA is outlined in the November 16, 2020 news announcement, with a NI 43-101 Technical Report expected to be filed within 45
days from that date. E3 Metals has also 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 15, 2018, effective
June 4, 2018. All reports are available on SEDAR (www.sedar.com)
ON BEHALF OF THE BOARD OF DIRECTORS,
Chris Doornbos
, President & CEO
E3 METALS CORP.
NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
Forward-Looking and Cautionary Statements
This news release includes certain forward-looking statements concerning the Offering and the use
of the net proceeds therefrom, 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 Metals Corp.
View original content:
http://www.newswire.ca/en/releases/archive/November2020/19/c8110.html
%SEDAR: 00011471E
For further information:
Chris Doornbos, Phone: (587) 324-2775, [email protected]
CO: E3 Metals Corp.
CNW 17:41e 19-NOV-20