Imperial and E3 Lithium form strategic agreement on lithium pilot project in Alberta Advances E3 Lithium's Clearwater Project with Imperial funding contribution Pilot project progresses commercialization of battery-grade lithium from historic
Imperial and E3 Lithium form strategic
agreement on lithium pilot project in Alberta
Advances E3 Lithium's Clearwater Project with Imperial funding contribution
Pilot project progresses commercialization of battery-grade lithium from historic
Leduc
field for
electric vehicles and energy storage
Imperial to provide technical and development support
CALGARY, AB
,
June 23, 2022
/CNW/ - Imperial Oil Limited (TSE: IMO) (NYSE American: IMO)
and E3 Lithium (TSXV: ETMC) (OTCQX: EEMMF) announced today a collaboration to advance a
lithium-extraction pilot in
Alberta
, exploring the redevelopment of an historic oil field into a potential
new leading source of lithium for
Canada's
growing critical minerals industry.
The pilot will support E3 Lithium's
Clearwater
project, which will draw lithium from under the
Leduc
oil field, Imperial's historic discovery that first launched major oil and gas development in
Western
Canada
. E3 Lithium's proprietary technology is designed to extract the critical mineral from the
lithium-rich brine, with potential for commercial development of battery-grade products.
"This exciting collaboration brings together Imperial's long-standing commitment to research and
technology to help test and scale E3's lithium-recovery technology," said
Jason Iwanika
, director of
commercial business development at Imperial. "We continue to advance the innovation and
technologies needed to support the energy transition, working in collaboration with governments and
industry to progress new opportunities from existing assets and sector expertise."
"E3 Lithium and Imperial share an interest in the diversification of the
Alberta
economy, local job
creation and sustainability," said
Chris Doornbos
, CEO of E3 Lithium. "Leduc No.1, Imperial's first
well into this reservoir, was one of Imperial's most prolific oil discoveries in
Alberta
and transformed
the provincial and Canadian economies, much like lithium has the potential to do. Having Imperial
now working with E3 Lithium in exploring the redevelopment of
Leduc
into a world-class source of
lithium is an exciting new chapter in
Alberta
and
Canada's
story."
The pilot project includes drilling
Alberta's
first lithium evaluation wells, planned to be completed by
the end of the third quarter of this year. Work will also focus on scaling up E3 Lithium's proprietary
technology, which brings the brine liquid to the surface where the lithium is removed and
concentrated. This liquid is immediately returned underground as part of a closed-loop system. E3
Lithium's PEA
1
estimates the first phase of development could produce approximately 20,000 tonnes
of lithium hydroxide per year.
Under the agreement, E3 Lithium will continue to operate the
Clearwater
project and retain its IP,
with technical and development support from Imperial in areas such as water and reservoir
management. The agreement also includes access for E3 Lithium to freehold lands in the area,
which are operated by Imperial.
As part of the agreement, Imperial has agreed to invest CAD
$6.35 million
into E3 at a pre-paid
price of CAD
$1.86
/warrant and the issuance of 3,413,979 warrants. Each warrant provides the
holder the option to exercise the warrant for one common share of E3. The warrants are
immediately exercisable, non-transferrable, expire in 24 months and are non-refundable.
E3 Lithium shall, subject to the TSX Venture Exchange's approval, pay a one-time 5% finder's fee,
being equal to
$317,500
based on the amount of Imperial's investment, in respect of this transaction.
The finder has elected to take 25% of the fee in cash
($79,375)
and 75% of the fee in common
shares of E3 Lithium. Accordingly, E3 Lithium will issue the finder 128,024 shares on closing.
For further information:
Imperial
Investor relations
(587) 476-4743
Media relations
(587) 476-7010
E3 Lithium
Investor and Media Relations
403-612-9498
About E3 Lithium
E3 Lithium is a lithium development company with 7.0 million tonnes of lithium carbonate equivalent
(LCE) inferred mineral resources1 in
Alberta
and an NPV8% 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-tax1. Through the
successful scale up its DLE technology towards commercialization, E3 Lithium's goal is to produce
high purity, battery grade, lithium products. With a significant lithium resource and innovative
technology solutions, E3 Lithium has the potential to deliver lithium to market from one of the best
jurisdictions in the world.
For more information about E3 Lithium, visit
http://www.e3lithium.ca
.
About Imperial
After more than a century, Imperial continues to be an industry leader in applying technology and
innovation to responsibly develop
Canada's
energy resources. As
Canada's
largest petroleum
refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer
from coast to coast, our company remains committed to high standards across all areas of our
business.
______________________
1
The Preliminary Economic Assessment (PEA) of the Clearwater Lithium Project NI 43-101 technical report is effective Dec 21, 2020. E3 Lithium 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 (https://e3lithium.ca/our-assets/technical-reports/) and SEDAR (www.sedar.com)
Forward-Looking and Cautionary Statements
Statements of future events or conditions in this report, including projections, targets, expectations,
estimates, and business plans are forward-looking statements within the meaning of applicable
Canadian securities legislation. Forward-looking statements can be identified by words such as
believe, anticipate, intend, propose, plan, target, estimate, expect, strategy, outlook, schedule,
future, continue, likely, may, will and similar references to future events or developments or the
negative thereof. Forward-looking statements in this report include, but are not limited to, references
to the redevelopment of the
Leduc
oil field into a potential new leading source of lithium; the timing,
scope, production and impact of the lithium-extraction pilot and the ability of E3 Lithium's proprietary
technology to extract lithium from brine; Imperial's continued support innovation and technologies
needed to support the energy transition; and lithium's potential to transform provincial and Canadian
economies.
Forward-looking statements are based on the company's current expectations, estimates,
projections and assumptions at the time the statements are made. Actual future financial and
operating results, including expectations and assumptions concerning demand growth and energy
source, supply and mix; project plans, timing, costs, technical evaluations and capacities and the
ability to effectively execute on these plans and operate assets; production rates and results of
lithium pilot project technology; the adoption and impact of new facilities or technologies, including for
extraction of lithium from brine; cash generation, financing sources and capital structure; applicable
laws and government policies; commodity prices and general market conditions; capital and
environmental expenditures; the political and economic impact of the
Russia
-
Ukraine
conflict; and
progression of the COVID-19 pandemic and its impacts on the ability to operate assets could differ
materially depending on a number of factors.
These factors include global, regional or local changes in supply and demand for lithium, 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, and the ability to bring new
technologies to commercial scale on a cost-competitive basis; unexpected technological
developments; political or regulatory events, including changes in law or government policy; the
receipt, in a timely manner, of regulatory and third-party approvals including for new technologies
and projects; environmental risks inherent in project activities; availability and performance of third-
party service providers; project management and schedules and timely completion of projects;
availability of financing and allocation of capital; unanticipated technical or operational difficulties;
operational hazards and risks; mineral analysis and performance; general economic conditions,
including the occurrence and duration of economic recessions; and other factors discussed in the
risk factors and management's discussion and analysis sections of the companies' most recent
annual reports and subsequent interim reports, as filed on EDGAR at
www.sec.gov
and SEDAR at
www.sedar.com
. All forward-looking statements are qualified in their entirety by the cautionary
statements and risk factor disclosure contained in filings made by the Company with the Canadian
securities regulators.
Forward-looking statements are not guarantees of future performance and involve a number of risks
and uncertainties, some that are similar to other oil and gas companies and some that are unique to
Imperial Oil Limited and E3 Lithium. Actual results may differ materially from those expressed or
implied by its forward-looking statements and readers are cautioned not to place undue reliance on
them. Neither company undertakes any obligation to update forward-looking statements contained
herein, 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.
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%SEDAR: 00011471E
CO: e3 Metals Corp.
CNW 07:55e 23-JUN-22