CALGARY, Sept. 18, 2019 /CNW/ – E3 Metals Corp. (TSXV: ETMC) (FSE: OU7A) (OTC:EEMMF) (the “Company” or “E3” or “E3 Metals”) is pleased to announce that it has entered into a Joint Development Agreement (the “Agreement”) with a wholly-owned subsidiary of Livent Corporation (“Livent”) to advance E3 Metals’ proprietary Ion-Exchange Direct Lithium Extraction 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.
E3 Metals’ Alberta Project boasts a total of 6.7 million tonnes lithium carbonate equivalent (LCE) inferred mineral resources1 within the Leduc Reservoir Formation in Alberta.
Livent is the world’s largest pure-play lithium producer, well-known for being one of the lowest cost producers of lithium carbonate. With facilities across the globe, Livent holds technical expertise in the extraction and production of various lithium products.
Under the Agreement, Livent will deploy its technical expertise to assist in the accelerated advancement of E3’s lithium extraction process towards commercialization. Livent will contribute up to US$ 5.5 million to the Joint Development Project, with an initial US$ 1.5 million contribution to be made shortly upon closing of the Agreement and following TSX Venture Exchange acceptance.
Joint Development Project: E3 Metals and Livent will jointly accelerate the development of E3’s proprietary direct lithium extraction process and overall lithium production processes through two stages of development:
- Ion Exchange (IX) Project: The first stage will include finalizing the commercial readiness of the ion exchange sorbent. The sorbent is used to produce a high purity lithium concentrate from Alberta brine.
- Pilot Plant Project: The second stage will include the construction and operation of a custom pilot plant deployed in Alberta for testing the IX Process and further processing of the concentrate into a saleable lithium product at a larger scale. The result of this stage will be a detailed process overview and economic development plan for E3’s Alberta Lithium Project.
Investment Agreement: Livent will contribute up to US$ 5.5 million to fund 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 investment into 6,229,368 common shares in the capital of E3, representing 19.9% of E3 based on the current share structure (the “Conversion”). Livent has been granted additional anti-dilution rights. In the event Livent elects to proceed with the Conversion, Livent can appoint one member to its Board of Directors, provided Livent maintains not less than a 5% equity interest.
“We are thrilled to be working with Livent to advance our proprietary Ion Exchange process and the Alberta Lithium Project,” said Chris Doornbos, President and CEO of E3 Metals. “There are few companies in the world that have the lithium production expertise Livent possesses. We believe this collaboration will accelerate the advancement of the innovative technology we have developed to date. This collaboration with Livent, and the Joint Development Project, demonstrates E3’s commitment to the commercialization of lithium in Alberta; we are excited to begin working with Livent immediately.”
Paul Graves, president and chief executive officer of Livent commented, “We look forward to providing our expertise to help E3 Metals accelerate the advancement of its lithium extraction technology and supporting its broader ambitions in Alberta. Livent has been a pioneer in the lithium industry for over 60 years. Collaborating with E3 Metals provides an opportunity to build on our rich heritage of innovation and to bring exciting new possibilities to our customers around the world.”
In consideration of facilitating the introduction of E3 Metals and Livent, as well as providing substantial assistance to E3 Metals in negotiating and finalizing the Agreement, E3 Metals will pay a consulting fee to Hampson Equities, Ltd. (“HEL”) comprised of 6% cash and 6% warrants the “Warrants”) based on the capital contributions of Livent to the Joint Development Project. The Warrants will be exercisable for a period of two years at a price equal to the market price of E3 at the time of each Warrant issuance.
The Agreement and consulting fee to HEL are subject to a number of conditions, including obtaining requisite TSX Venture Exchange approval.
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 commercialization of its proprietary ion exchange lithium extraction technology, E3 plans to quickly move towards the production of high purity, battery grade, lithium products.
E3 Metals combines a significant in situ 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 information about E3 Metals, visit www.e3metalscorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
President & CEO
E3 METALS CORP.
Completion of the Agreement is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance. There can be no assurance that the Agreement will be completed as proposed or at all.
The TSX Venture Exchange has in no way passed upon the merits of the Agreement and has neither approved nor disapproved of the contents of this press release. This press release is not an offer of the securities for sale in the United States. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
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)
Forward Looking Statements
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking statements or information. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of E3 and its management. In particular, this news release contains forward-looking statements pertaining, directly or indirectly, to the following: E3’s development plans and work commitments, the timing of closing and the use of proceeds of the funds contributed by Livent, the timing and receipt of required approvals, the timing of issuance of securities, the timing or ability to close on the contribution to the Joint Development Project, as well as economic factors, business and operations strategies. There can be no assurance that E3 will complete the Joint Development Project on the timeline anticipated or at all. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
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.
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SOURCE E3 Metals Corp.
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