- 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 resources1 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.
For further information: 205 - 227 10th St NW, Calgary, AB T2N 1V5, +1 (587) 324-2775, [email protected], e3metalscorp.com