E3 Metals Corp Announces 2021 Year End Results and Year in Review
E3 Metals Corp Announces 2021 Year End
Results and Year in Review
CALGARY, AB
,
March 29, 2022
/CNW/ - E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A)
(OTCQX: EEMMF) (the "Company" or "E3 Metals"), an emerging lithium developer and leading
direct lithium extraction ("DLE") technology innovator, is pleased to announce that it has filed its
Consolidated Financial Statements for the for the year ended
December 31, 2021
and the
accompanying Management Discussion and Analysis on its SEDAR profile at
www.sedar.com
. The
financial statements and MD&A will also be posted on the Company's website at
www.e3metalscorp.com
.
President's Year in Review
At the end of 2020, E3 Metals Corp released its first economic analysis considering the development
of its inferred mineral resource and the application of its ion-exchange direct lithium extraction
process. The positive results from this analysis were a catalyst for the Company to complete the
first of two significant capital raises starting with
$5.0 million
at the end of the year.
At the beginning of 2021, E3 Metals and FMC Lithium
USA
Corp ("Livent") completed the separation
of its Joint Development Agreement. E3 Metals retained full ownership and rights to its technology,
and the Company commissioned its development facility with the goal of commercializing the
technology. With the additional raise of
$8.1 million
, the Company has been able to establish itself as
a global market leader in Direct Lithium Extraction ("DLE") technology and is committed to
progressing the development of its 100% owned Clearwater Lithium Project.
The Clearwater Preliminary Economic Assessment ("PEA") outlined a project producing 20,000
tonnes per year of lithium hydroxide ("LHM") over 20 years. The robust project economics showed a
pre-tax value of USD
$1.1 billion
NPV8% and an IRR of 32%, using an average LHM sales price of
approximately USD
$14,000
/tonne. Spot market pricing has seen LHM trading at over USD
$75,000
/tonne in 2022 and has provided a strong incentive for E3 Metals to accelerate the project
without compromise to meet the growing demand, and supply the global market with carbon neutral,
battery grade lithium.
E3 Metals is proud to highlight the following 2021 achievements:
Progression of its DLE technology:
The Company commissioned its
Calgary
-based lab
facility in
February 2021
and has been able to accelerate the development of its ion-exchange
process. The facility delivered strong results from a scaled-up lab pilot prototype completed in
October 2021
which delivered up to 97% lithium recoveries from genuine
Leduc
brines. The fully
automated lab pilot prototype operates with two trains and has been processing up to 18 bbl/d
of brine. This has been providing the team with significant amounts of data to assist in the
design and engineering work of the upcoming field pilot plant.
Progression of the Company's Resources
: Leveraging on existing data provided on the
backbone of the
Alberta
oil and gas industry, the Company has been able to build and complete
its geological model to provide the optimal locations for its lithium test wells. This provides the
basis to upgrade portions of the 7.0 million tonnes of Inferred Resource to Measured and
Indicated, as defined by National Instrument 43-101.
Regulatory Clarity
: In consultation with stakeholders including E3 Metals, the
Alberta
government passed Bill-82, which centralized all critical minerals regulatory functions with the
Alberta Energy Regulator ("AER") who already oversees the oil & gas industry. This provides
regulatory certainty and a well-established framework for E3 Metals to permit and license its
future commercial developments.
Securing Sources of Non-dilutive Financing:
The Company continues to deliver shareholder
value through the utilization of new and existing government grants. In
April 2021
, E3 Metals
received a non-dilutive grant from Alberta Innovates of
$1.8 million
to provide financing for the
lab-pilot prototype and the upcoming field pilot. The Company continues to pursue other sources
of grant funding from provincial and federal organizations.
Corporate Expansion:
The Company upgraded to Tier 1 on the TSX Venture Exchange and up
listed to the OTCQX during 2021. The resulting additional trading volume, interest and value
enhancing opportunities have helped contribute to the 270% year-over-year return based on the
appreciation of the closing share price on the last trading day in 2021 from 2020.
Outlook
At the end of 2021, E3 Metals ended with a strong balance sheet of
$17.6 million
in working capital.
Potential source of funds includes
$10 million
of 'in-the-money' warrants expiring by
February 2023
.
This provides significant financial flexibility for the Company to deliver on its next major milestones:
1
.
De-risk and Upgrade the Clearwater Resource
: Drilling Alberta's first lithium test wells into
the Leduc Aquifer.
2
.
De-risk and Scale-up the Ion-Exchange Technology
: Constructing and operating a
modularized ion-exchange field pilot in the
Clearwater Area
.
3
.
Production of Battery Grade LHM Samples
: Using commercially available technology to
upgrade lithium concentrate from the Ion-Exchange technology to battery grade LHM for
potential offtake partners.
The Company is well positioned to take advantage of the current market environment with a
business plan aimed at generating substantial returns to our shareholders by advancing our project.
We continue to pursue our corporate initiatives while advancing our strategy to develop the lithium
industry in
Canada
.
ON BEHALF OF THE BOARD OF DIRECTORS,
Chris Doornbos
, President & CEO
About E3 Metals Corp.
E3 Metals is a lithium development Company with 7.0 million tonnes of lithium carbonate equivalent
(LCE) inferred mineral resources
1
in
Alberta
and an NPV
8%
on its Clearwater Lithium Project 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 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.
For more information about E3 Metals, visit
http://www.e3metalscorp.com
.
1:
The Preliminary Economic Assessment (PEA) of the Clearwater Lithium Project NI 43-101 technical report is effective Dec 21, 2020. E3 Metals has also released three NI 43-101
Technical Reports providing a total resource of 7.0Mt LCE. The Clearwater Lithium Project PEA resource estimate, identifying 2.2Mt LCE (inferred) effective December 21, 2020;
the North Rocky Resource Area (NRRA) Technical Report effective October 27, 2017 identifying 0.9Mt LCE (inferred); and the Exshaw West Resource Area (EWRA) identifying
3.9Mt LCE (inferred) dated June 4, 2018. All reports are available on the Company's website (
e3metalscorp.com/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 Metals Corp.
View original content:
http://www.newswire.ca/en/releases/archive/March2022/29/c9827.html
%SEDAR: 00011471E
For further information:
Chris Doornbos, CEO, Or Raymond Chow, CFO, E3 Metals Corp, Suite
1520, 300 5th Avenue SW, Calgary AB T2P 3C4,
Phone: (587) 324-2775,
CO: e3 Metals Corp.
CNW 03:15e 29-MAR-22