Lithium ION Energy Signs LOI with United Rare Earths, for a Business Combination
Lithium ION Energy (TSXV: ION) has entered into an LOI Agreement for a business combination with United Rare Earths (UnitedRE), a US-based rare earths recycling and refining company. UnitedRE has advanced discussions with a federal agency for non-recourse, non-dilutive funding and holds an MOU with a national laboratory. To support this development, ION Energy announced a non-brokered private placement of convertible debentures for US$2 million at 8% interest, convertible to shares at $0.10 per share. The debentures will mature in 24 months, with proceeds used for the business combination, technology development, and working capital.
Lithium ION Energy (TSXV: ION) ha firmato un accordo di intenti (LOI) per una fusione aziendale con United Rare Earths (UnitedRE), una compagnia statunitense specializzata nel riciclo e nella raffinazione delle terre rare. UnitedRE ha avviato discussioni avanzate con un'agenzia federale per ottenere finanziamenti non ricorsivi e non diluitivi e detiene un MOU con un laboratorio nazionale. Per sostenere questo sviluppo, ION Energy ha annunciato un collocamento privato di obbligazioni convertibili non intermedicate per 2 milioni di dollari USA con un interesse dell'8%, convertibili in azioni a $0,10 per azione. Le obbligazioni scadranno in 24 mesi, con i proventi destinati alla fusione aziendale, allo sviluppo tecnologico e al capitale di esercizio.
Lithium ION Energy (TSXV: ION) ha firmado un acuerdo de intención (LOI) para una combinación empresarial con United Rare Earths (UnitedRE), una empresa estadounidense dedicada al reciclaje y refinación de tierras raras. UnitedRE ha tenido conversaciones avanzadas con una agencia federal para obtener financiamiento no reembolsable y no dilutivo, y tiene un MOU con un laboratorio nacional. Para apoyar este desarrollo, ION Energy anunció una colocación privada de bonos convertibles sin intermediarios por 2 millones de dólares estadounidenses a un interés del 8%, convertibles en acciones a $0.10 por acción. Los bonos vencerán en 24 meses, y los fondos se utilizarán para la combinación empresarial, el desarrollo tecnológico y el capital de trabajo.
리튬 이온 에너지 (TSXV: ION)는 희토류 재활용 및 정제 회사인 유나이티드 희토류 (UnitedRE)와의 비즈니스 조합을 위한 LOI(의향서) 계약을 체결했습니다. UnitedRE는 비상환, 비희석 자금 조달을 위한 연방 기관과의 구체적인 논의를 진행 중이며, 국가 연구소와 MOU를 체결하고 있습니다. 이 발전을 지원하기 위해 ION Energy는 200만 달러 미국 달러에 대해 8% 이자의 전환사채 비중의 비공식 사모 배치를 발표했습니다. 이 채권은 주당 $0.10에 주식으로 전환할 수 있으며, 24개월 후 만기 되며 수익금은 사업 결합, 기술 개발 및 운영 자금으로 사용됩니다.
Lithium ION Energy (TSXV: ION) a signé un accord de principe (LOI) pour une combinaison d'entreprise avec United Rare Earths (UnitedRE), une entreprise américaine spécialisée dans le recyclage et le raffinage des terres rares. UnitedRE a engagé des discussions avancées avec une agence fédérale pour un financement non remboursable et non dilutif et détient un MOU avec un laboratoire national. Pour soutenir ce développement, ION Energy a annoncé un placement privé de débentures convertibles sans courtier pour 2 millions de dollars américains à un taux d'intérêt de 8%, convertibles en actions à 0,10 $ par action. Les débentures arriveront à échéance dans 24 mois, et les recettes seront utilisées pour la combinaison d'entreprise, le développement technologique et le fonds de roulement.
Lithium ION Energy (TSXV: ION) hat eine Absichtserklärung (LOI) für eine Unternehmenszusammenlegung mit United Rare Earths (UnitedRE), einem in den USA ansässigen Unternehmen für das Recycling und die Raffinierung seltener Erden, unterzeichnet. UnitedRE führt fortgeschrittene Gespräche mit einer Bundesbehörde über nicht rückzahlbare, nicht verwässernde Finanzierungen und verfügt über ein MOU mit einem nationalen Labor. Um diese Entwicklung zu unterstützen, gab ION Energy eine nicht vermittelten Privatplatzierung von wandelbaren Anleihen über 2 Millionen US-Dollar zu einem Zinssatz von 8%, wandelbar in Aktien zu 0,10 $ pro Aktie, bekannt. Die Anleihen werden in 24 Monaten fällig, wobei die Erlöse für die Unternehmenszusammenlegung, die Technologieentwicklung und das Betriebskapital verwendet werden.
- Strategic business combination with UnitedRE provides access to rare earth recycling technology
- Potential access to non-recourse, non-dilutive federal funding through UnitedRE
- Secured US$2 million through convertible debentures for business development
- Dilution risk for shareholders through $0.10 convertible debentures
- Additional debt burden with 8% interest rate on debentures
Toronto, Ontario--(Newsfile Corp. - October 31, 2024) - Lithium ION Energy Limited (TSXV: ION) (FSE: ZA4) ("ION" or the "Company") is pleased to share that it has entered into an LOI Agreement to progress a business combination with United Rare Earths Ltd. ("UnitedRE"), a US-based rare earths recycling and refining company. UnitedRE secured a strategic location to develop and has significantly advanced discussions with a federal agency for grant opportunities which includes non-recourse, non-dilutive funding. UnitedRE has support at the highest levels of the government and an instrumental MOU with a national laboratory that will advance rare earth recycling and refining technologies in the U.S.
Highlights:
Cutting edge technology with a clear path to creating a low-carbon, domestic supply of rare earths to the US, leveraging non-recourse funding;
Rare earth elements required for military applications and essential in the production of motors needed for the energy transition related to electrification - a complementary strategic transaction;
Lithium continues to play an irreplaceable role in the energy transition and ION's assets will be at the ready to fill this requirement; and
Strong combined management teams with deep relationships across government, technology, capital markets and mining.
"I am delighted to announce this major development with respect to becoming an integral player in the critical metals space. We believe completion of the proposed business combination will catapult ION Energy into a diversified battery and critical metals player on the global market. We believe strongly in our Lithium assets and the sheer scale and potential UnitedRE brings is compelling to achieve the vital objective of a cleaner, secure, traceable future for humanity," said Ali Haji, CEO & Director - Lithium ION Energy Ltd.
Jeffrey Willis, Chairman of UnitedRE, commented, "We are excited to announce this strategic step forward with ION Energy, marking a pivotal moment for both organizations. By aligning our resources and expertise with ION Energy, we are creating a foundation for accelerated growth and innovation. This partnership enhances our capability to deliver on our shared mission to establish a sustainable, resilient supply chain to power renewable technologies and the electrification movement. Our collective efforts, grounded in a shared vision, will empower us to meet the growing demand for rare earth materials, securing the supply chain for America's future."
Convertible Debentures:
To support this new development for the Company, ION Energy is also pleased to announce a non-brokered private placement offering of convertible debentures of the Company ("Debentures") at a price of US
Proceeds of the Offering will be used to complete the business combination with UnitedRE and develop its rare earth recycling and refining technology, for the continued advancement and exploration of the Company's lithium assets, as well as working capital.
ION Energy expects the proposed business combination will constitute an "expedited acquisition" under the policies of the TSXV. Completion of each of the proposed business combination and the Offering remains subject to the approval of the TSXV.
About Lithium ION Energy Ltd.
Lithium ION Energy Ltd. (TSXV: ION) (FSE: ZA4) is committed to exploring and developing high quality lithium resources in strategic jurisdictions. ION's flagship, 65,000+ hectare Baavhai Uul lithium brine project represents the largest and first lithium brine exploration licence award in Mongolia. ION also holds the 29,000+ hectare Urgakh Naran highly prospective lithium brine licence in Dorngovi Province in Mongolia. With the acquisition of the Bliss Lake and Little Nahani projects in NWT, Canada, ION has enhanced its lithium asset and jurisdiction profile. ION is well-poised to be a key player in the clean energy revolution, positioned well to service the world's increased demand for lithium. Information about the Company is available on its website, www.ionenergy.ca, or under its profile on SEDAR+ at www.sedarplus.ca.
About United Rare Earths Ltd.
United Rare Earths, Inc, a U.S. owned company, is dedicated to a domestic approach to the acquisition, refining, and distribution of magnet and rare earth minerals. UnitedRE is developing a domestic rare earths hub in northeast Tennessee. Operations will include a magnet recycling facility, a separation facility for newly mined materials and a technology center of excellence. The mission is to create a secure, reliable and traceable supply of rare earth minerals to support new and existing domestic based technologies.
In addition to an MOU with a national laboratory to assist with development, design planning and R&D optimization work, UnitedRE has also obtained a team of world-class advisors such as EY (Ernst & Young): research and strategy, King & Spaulding LLP: legal counsel, and Brownstein Hyatt Farber Schreck: government policy.
For further information:
COMPANY CONTACT: Ali Haji, ali@ionenergy.ca, 647-871-4571
COMPANY CONTACT: Jeffrey Willis jkwillis@unitedre.com, 307-287-6227
MEDIA CONTACT: Siloni Waraich, siloni@ionenergy.ca, 416-432-4920
Cautionary Note Regarding Forward-Looking Information
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 news release.
Information set forth in this news release contains forward-looking statements. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including with respect to the proposed business combination and the Company's operations after completion thereof, and other words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, including with respect to the entering into of the proposed business combination with UnitedRE and the Company's operations after the completion thereof. Important factors that could cause actual results to differ materially from ION Energy's expectations include, among others, regulatory approvals, the ability to negotiate and implement definitive agreements with respect to the business combination, uncertainties relating to availability and costs of financing needed in the future, changes in equity markets, risks related to international operations, the actual results of current exploration activities, delays in the development of projects, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of lithium, and the ability to predict or counteract other factors relevant to the Company's business. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228454
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