E3 Metals Closes Oversubscribed Private Placement
E3 Metals Closes Oversubscribed Private
Placement
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA
ONLY AND IS NOT FOR
DISSEMINATION IN
THE UNITED STATES
OR FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES/
CALGARY
,
April 4, 2019
/CNW/ - E3 METALS CORP. (TSXV: ETMC, FSE: OU7A, OTC: EEMMF)
(the "Company" or "E3 Metals") is pleased to announce the successful closing of its non-brokered
private placement financing (the "Offering") announced on
March 26, 2019
. Under the Offering, the
Company has issued 3,971,983 units of the Company (the "Units") at a price of
$0.35
per Unit for
gross proceeds of
$1,390,194.05
. Each Unit comprises one common share (a "Share") and one-
half of one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to
acquire one additional common share at an exercise price of
$0.45
for a period of 24 months
following the date of issuance. Due to strong demand, the Company accepted oversubscriptions of
approximately 32% or
$445,000.00
more than the original
$945,000.00
target. On Closing of the
Offering E3 Metals has 24,973,985 common shares issued and outstanding.
In accordance with applicable securities laws and the policies of the TSX Venture
Exchange ("TSXV"), the Company paid an aggregate
$43,541.69
in cash commission, and issued an
aggregate 124,404 finders' warrants (the "Finders' Warrants"), each Finders' Warrant entitling the
holder to acquire one additional common share at an exercise price of
$0.45
for a period of 24
months following the date of issuance.
All securities issued are subject to a hold period under applicable securities laws in
Canada
expiring
on
August 4, 2018
.
Chris Doornbos
, E3 Metals' President and CEO stated: "We believe the overwhelming interest in this
financing resulted from the progress we have made with our proprietary lithium extraction technology
(see News Release
March 4, 2019
) and the general understanding that E3 Metals and other
companies in the Direct Brine Lithium sector are getting closer to demonstrating the economic
viability of producing lithium hydroxide or lithium carbonate from Petro-Lithium Brines."
E3 Metals plans on deploying the raised capital towards the continued progression of its proprietary
Ion Exchange Lithium Extraction Technology. Optimizing the performance of our proprietary Ion
Extraction Technology is a key part of E3 Metals' larger development plan as outlined in the
September 28, 2018
news release. The ultimate goal is to maximize the performance of the sorbent
and to demonstrate it on a commercial scale. This is likely to have a significant impact on the
efficiencies of the overall production flow sheet when E3's Extraction Technology is combined with
other available industry technology to produce lithium hydroxide.
Once the Extraction Technology is sufficiently optimized in a lab-based prototype, E3 will move
towards the construction and deployment of a pilot plant in E3 Metals' permit area.
To reach the target for battery grade lithium hydroxide (LiOH•H2O), lithium is refined, and impurities
removed, to reach a 99.5% or greater purity of LiOH•H2O. Removing impurities and concentrating
the lithium in a single step is critical to the overall production flow sheet. If these concentration levels
can be consistently achieved under full cycle process flow conditions and in larger field-based pilot
plant testing, the Company believes the most significant development hurdle will have been achieved.
About E3 Metals Corp.
E3 Metals is a Petro-Lithium company rapidly advancing the development of direct recovery lithium
brine projects in
Alberta
. E3 Metals holds lithium resources at 6.7 Mt LCE (inferred)
1
. The focus of
the Company on the continued develop of its proprietary extraction technology towards commercial
readiness. The Company has a compelling competitive advantage by virtue of having access to
extensive infrastructure built by the Oil and Gas industry in
Alberta
. This has provided E3 Metals
with extremely low finding costs, as the Company has been able to sample existing wells to define
its resource. This infrastructure may also provide wells and pipelines for a future lithium production
operation, potentially reducing the future underlying capital requirements significantly. The Company
is committed to the development of the Alberta Lithium Project towards commercial production of
lithium. More information about E3 Metals can be found on our website by visiting:
www.e3metalscorp.com
.
1:
E3 Metals has released information on three 43-101 Technical Reports totalling 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, the North Rocky Resource Area (NRRA) Technical Report
identifies 0.9Mt LCE (inferred) is dated effective October 27, 2017, and the Exshaw West Resource Area (EWRA), identifies 3.9Mt LCE (inferred) is dated
effective June 4
th
2018. All reports are available on the company's website and SEDAR (
www.sedar.com
)
ON BEHALF OF THE BOARD OF DIRECTORS,
Chris Doornbos
, President & CEO
E3 METALS CORP.
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.
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For further information:
Chris Doornbos, Phone: (587) 324-2775, [email protected]
CO: E3 Metals Corp.
CNW 03:05e 04-APR-19