E3 Metals' Joint Development Project Commences with Initial US $1.5 M Contribution from Livent Corporation
E3 Metals' Joint Development Project
Commences with Initial US $1.5 M
Contribution from Livent Corporation
TSXV: ETMC
FSE: OU7A
OTC: EEMMF
HIGHLIGHTS
Initial
US$1.5M
contribution received upon TSXV Approval
Additional details of the Joint Development Agreement transaction with Livent
Corporation are provided
CALGARY
,
Oct. 10, 2019
/CNW/ - E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTC:
EEMMF) (the "Company" or "E3" or "E3 Metals") is pleased to announce that Livent Corporation
(NYSE: LTHM) has contributed the initial US
$1.5 million dollars
in relation to the Joint Development
Agreement (the "Agreement"). This initial contribution marks the commencement of the Joint
Development Project with Livent for the technical advancement of E3 Metals' proprietary on
exchange Direct Lithium Extraction (DLE) Process. The ultimate goal of the Agreement is to develop
a process to produce battery quality lithium products from the lithium enriched brines located in the
Leduc Formation in
Alberta
.
Joint Development Project Investment
Livent will contribute up to US
$5.5 million
to the Joint Development Project. On satisfaction of the
full US
$5.5 million
in funding and completion of the Joint Development Project, for a period of 90
days, Livent will have the option to convert its US
$5.5 million
investment into 6,229,368 common
shares in the capital of E3, representing 19.9% equity ownership of E3 based on the current share
structure (the "Conversion"). Should Livent elect to proceed with the Conversion, Livent can appoint
one member to E3's Board of Directors, provided Livent maintains not less than a 5% equity interest
in the Company. Under the Agreement, should Livent not provide the entire US
$5.5 million
, then: i),
Livent is not entitled to the Conversion; ii) E3 has no obligation to return any funds contributed by
Livent; iii) all E3 IP and jointly developed new IP (other than improvements to Livent IP) will revert to
E3. Livent has also been granted additional limited anti-dilution rights.
"We are thrilled to be working with Livent to advance our proprietary process and the Alberta Lithium
Project," said
Chris Doornbos
, President and CEO of E3 Metals. "We believe this collaboration will
accelerate the advancement of the innovative technology we have developed to date. The Joint
Development Project demonstrates E3's commitment to the commercialization of lithium in
Alberta
."
In conjunction with the initial funding by Livent of the jointly owned and newly incorporated joint
development company, and in accordance with the terms of its Financial Advisory Agreement with
Hampson Equities Inc. ("HEL"), E3 has agreed to pay HEL a cash fee of
CAD$119,610
(being 6% of
the
US$1.5 million
contribution) and issue HEL 109,935 warrants (the "Warrants"), each Warrant
being exercisable into a common share of E3 at a price of CA
$1.17
per share for a period of 2
years from the date of issuance. The
$1.17
conversion price for the Warrants is based on an implied
share price valuation that assumes an investment of US
$5.5 million
using the current USD/CAD
exchange rate and the issuance of 6,229,368 shares. Notwithstanding the foregoing, E3 Metals
makes no representations as to the current trading price of its shares in the public market or
whether the entire US
$5.5 million
investment will be made.
About Livent Corporation
For more than six decades, Livent has partnered with its customers to safely and sustainably use
lithium to power the world. Livent is one of only a small number of companies with the capability,
reputation, and know-how to produce high-quality finished lithium compounds that are helping meet
the growing demand for lithium. The company has one of the broadest product portfolios in the
industry, powering demand for green energy, modern mobility, the mobile economy, and specialized
innovations, including light alloys and lubricants. Livent employs approximately 800 people throughout
the world and operates manufacturing sites in
the United States
,
England
,
India
,
China
and
Argentina
. For more information, visit Livent.com.
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 10:15e 10-OCT-19