E3 Lithium has closed an upsized equity offering generating approximately $11.5 million in gross proceeds, including the full exercise of the offering’s overallotment option. The Canadian lithium developer issued 12,782,250 units.
Each unit consists of one E3 Lithium common share and one common share purchase warrant.
Each warrant entitles its holder to acquire one E3 Lithium common share for $1.10 through September 24, 2029.
E3 has applied to list the warrants on the TSX Venture Exchange and has received conditional approval, subject to satisfying the exchange’s listing requirements.
ATB Cormark Capital Markets and Canaccord Genuity co-led the offering, with Roth Canada and Stifel Nicolaus Canada participating in the agent syndicate.
The agents received an aggregate cash commission of $669,992.
E3 plans to use the net proceeds to advance its Clearwater Project and for general working capital purposes.
Two directors, one of whom is also an officer, and two additional officers participated in the financing. The insiders collectively acquired 168,889 units for $152,000.
E3 is developing lithium resources in Alberta and reports 21.2 million tonnes of lithium carbonate equivalent in measured and indicated mineral resources, along with 0.3 million tonnes of inferred resources.
Its Clearwater Project accounts for 16.2 million tonnes of measured and indicated lithium carbonate equivalent resources at a lithium grade of 75.5 milligrams per liter.
The Clearwater pre-feasibility study outlined 1.13 million tonnes of proven and probable lithium carbonate equivalent mineral reserves.
KEY QUOTE:
“This financing, along with available government grants, strengthens our financial position as we accelerate executing on key milestones to propel the Clearwater Project towards commercial production of battery-grade lithium. The financing was oversubscribed and primarily consisted of institutional investors, which shows a great vote of confidence in the development of our project.”
Chris Doornbos, CEO and Chair of E3 Lithium
