INTERNATIONAL BATTERY METALS LTD. ANNOUNCES SUBSEQUENT CLOSING OF STRATEGIC PRIVATE PLACEMENT
On May 31, 2024, International Battery Metals announced a subsequent closing of its strategic private placement. The company will issue at least 8,478,246 units at CAD$0.76632 per unit, raising approximately CAD$6,497,050 (USD$4.75 million). Each unit includes one common share and one common share purchase warrant, with warrants exercisable at CAD$0.9579 for two years. EV Metals VI , controlled by company director Jacob Warnock, will participate, and receive a structuring fee of USD$237,500 in common shares. Proceeds will fund the expansion of a lithium extraction plant in the western U.S. and general capital needs. The placement is subject to a statutory hold period of four months. The deal qualifies as a 'related party transaction' but meets exemptions under MI 61-101.
- Raised CAD$6,497,050 (USD$4.75 million) through private placement.
- Proceeds to expand lithium extraction plant, potentially increasing production capacity.
- Participation by EV Metals VI , indicating strong internal support.
- Structuring fee paid in common shares, conserving cash resources.
- Potential for further financing up to USD$8,814,000 on similar terms.
- Warrants could provide additional future capital if exercised.
- Significant dilution with issuance of 8,478,246 units.
- Strict statutory hold period of four months under Canadian Securities laws.
- Related party transaction raises governance and independence concerns.
- Structuring fee results in additional 423,912 common shares issued, increasing dilution.
- Risk inherent in forward-looking statements regarding future financing and expansion.
Each Unit consists of one common share ("Common Share") of the Company, and one Common Share purchase warrant (a "Warrant"), each Warrant entitling the holder thereof to acquire one Common Share for a period of two years from the date of issuance for an exercise price of
The proceeds of the Private Placement will used by the Company for expenditures to increase the production capacity of its modular direct lithium extraction plant (the "DLE Plant") contracted for operations in the western
The Company may complete additional private placement financings of up to approximately
In connection with the Private Placement, EV Metals will acquire 8,478,246 Units for gross proceeds of
About the Company
The Company is an advanced technology company focused on the development of environmentally responsible methods of extracting lithium compounds from brine. The Company has developed the DLE Plant which allows for rapid deployment to a resource holders production site. The Company is working with resource holders of oilfield brines, brine aquifers, and industrial customers with brine by-products. The Company believes the modular design of its DLE Plant provides significant initial costs savings to customers and the proprietary DLE technology lowers operating costs by selectively extracting lithium from the brine while efficiently removing contaminants.
ON BEHALF OF THE BOARD
"William Webster"
William Webster, Chair of the Board
Neither Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward‐looking and cautionary statements
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in
This release contains certain forward‐looking statements with respect to, among other things, the anticipated use of proceeds from the Private Placement and the Company's expectation that it may complete future private placements with the Private Placement investors, on similar terms, for up to an additional amount of approximately
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SOURCE International Battery Metals Ltd.
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