INTERNATIONAL BATTERY METALS LTD. COMPLETES STRATEGIC PRIVATE PLACEMENT
International Battery Metals (IBATF) has completed a significant private placement. The company issued 11,478,246 units at a price of CAD$0.76632 per unit, raising USD$6,430,772 (approx. CAD$8,796,010). Each unit includes one common share and one purchase warrant, allowing the holder to buy one common share for CAD$0.9579 within two years. Major participants were EV Metals VI and Encompass Capital Advisors A structuring fee of USD$237,500 was paid to EV Metals via 423,912 common shares. The funds will enhance the production capacity of the company's modular direct lithium extraction plant in the western US and provide general working capital. Securities from this placement are subject to a four-month hold period under Canadian law and are restricted under US law.
- Raised USD$6,430,772 in funding
- Expansion of production capacity for the DLE Plant
- Strategic participation from EV Metals and Encompass Capital Advisors
- Structuring fee successfully paid through common shares
- Related party transaction concerns under MI 61-101 regulations
- Securities subject to a four-month hold period
- Potential shareholder dilution from issuance of new shares
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 Private Placement was completed with EV Metals VI LLC, a private company controlled by Jacob Warnock, a director of the Company ("EV Metals"), and funds and accounts managed by Encompass Capital Advisors LLC ("Encompass"). Encompass is participating in the Private Placement pursuant to certain pre-emptive rights granted under the terms of an Investment Agreement dated effective April 21, 2023.
In connection with the Private Placement, the Company will pay a structuring fee to EV Metals (or as directed by EV Metals) in the amount 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 securities issued under the Private Placement are subject to a statutory hold period of four months from the date of issuance under Canadian Securities laws and will be restricted securities under the United States Securities Act of 1933.
MI 61-101 Disclosure
In connection with the Private Placement, EV Metals acquired 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, Chair of the Board
+1 (832) 683-8839
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. By their nature, forward‐looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward‐looking statements.
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SOURCE International Battery Metals Ltd.
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