Livent Opts Out of the Joint Development Project Due to Resource and Capital Considerations
CALGARY, AB, Nov. 26, 2020 /CNW/ - E3 METALS CORP. (TSXV: ETMC) (FSE: OU7A) (OTC: EEMMF) (the "Company" or "E3 Metals"), an emerging lithium developer and leading lithium extraction technology innovator, announced today that FMC Lithium USA Corp. ("Livent") has decided to opt out of the Joint Development Agreement in place between the two organizations.
In communicating the decision, Livent expressed confidence in the E3 Metals technology and in the world class Leduc aquifer, but said resource and capital allocation considerations forced its decision to withdraw. E3 Metals appreciates the work Livent has funded and its input to date. Significant achievements have been made in advancing the technology towards commercialization and the foundation is solidly in place to complete the process. The Company plans to commercialize the developments completed through the partnership with Livent. Despite opting out of the existing agreement, Livent has expressed interest to E3 Metals in working together to further advance the DLE technology under a different deal structure.
E3 Metals will continue to deploy the Direct Lithium Extraction (DLE) technology as planned. The Calgary testing facility will be opened in early 2021 and work will continue towards construction and operation of the Field Pilot Plant to fully demonstrate the capabilities and effectiveness of E3 Metals' DLE technology.
As specified in the Joint Development Agreement with Livent, all licenses and rights to the technology will be retained and returned entirely to E3 Metals. In addition, the Company has benefitted from the advancement in the technology and the C$2 million contributed by Livent including over C$450,000 of capital not spent to date.
Furthermore, E3 Metals will no longer be obligated to issue Livent 19.9% of its share capital, represented by 7,929,368 shares to be issued on top of 594,068 warrants (the "Warrants") currently held by Livent. The Warrants which are exercisable at a price of $0.40 per share will be returned to treasury for cancellation.
"We see the opportunity with the technology E3 Metals is developing for use at the Leduc Formation." commented Paul Graves, CEO of Livent Corp. "Our decision does not reflect a view on the likely success of E3 in developing the Leduc Formation. The decision by Livent not to move to the next phase of joint development that was contemplated by the original development agreement is driven by Livent's own resource and capital allocation choices. We have appreciated working with the E3 team and wish them every success in their endeavors."
"E3's team of experts will complete the remaining development work as scheduled," said Chris Doornbos, E3 Metals' President and CEO. "We respect Livent's position and their capital constraints; the capital deployed to date from Livent has supported the significant advancements and major milestones achieved, including a DLE technology benchtop pilot prototype. We value the collaboration from Livent, especially their technical team, who have contributed to E3 Metals achieving these major milestones on the development of our technology. All of this, in addition to the recently completed PEA, will allow E3 to advance discussions with interested potential partners. As we look to the future, E3 Metals will continue to power the growing electrical revolution."
About E3 Metals
E3 Metals is a lithium development company with 7.0 million tonnes of lithium carbonate equivalent (LCE) inferred mineral resources in Alberta and an after-tax NPV8% on its Clearwater Lithium Project of USD 1.1B with a 32%1 IRR. Through the successful scale up its DLE process towards commercialization, E3 Metals' goal is to produce high purity, battery grade, lithium products. With a significant lithium resource and innovative technology solutions, E3 Metals has the potential to deliver lithium to market from one of the best jurisdictions in the world. E3 Metals also continues to work with partners at the University of Alberta and at GreenCentre Canada. For more information about E3 Metals, visit http://www.e3metalscorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
President & CEO
1: A summary of the Clearwater Lithium Project PEA is outlined in the November 16, 2020 news announcement, with a NI 43-101 Technical Report expected to be filed within 45 days from that date. E3 Metals has also 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 15, 2018, effective June 4, 2018. All reports are available on SEDAR (www.sedar.com)
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.
This news release includes certain forward-looking statements concerning the potential of the Company's projects and technology, as well as management's objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the effectiveness and feasibility of emerging lithium extraction technologies which have not yet been tested or proven on a commercial scale or on the Company's brine, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at http://www.sedar.com/. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.
SOURCE E3 Metals Corp.
Company Codes: OtherOTC:EEMMF, TorontoVE:ETMC, Frankfurt:OU7A
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