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Imperial Oil investing $6.35-million in E3’s Clearwater lithium pilot project, Alberta

EDMONTON – Imperial Oil Ltd. [IMO-TSX, NYSE] and E3 Metals Corp. [ETMC-TSXV; EEMMF-OTCQX; OU7A-FSE](E3 Lithium) have entered a collaboration to advance…

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This article was originally published by Canadian Investor

EDMONTON – Imperial Oil Ltd. [IMO-TSX, NYSE] and E3 Metals Corp. [ETMC-TSXV; EEMMF-OTCQX; OU7A-FSE](E3 Lithium) have entered a collaboration to advance a lithium-extraction pilot in Alberta, exploring the redevelopment of a historic oil field into a potential new leading source of lithium for Canada’s growing critical minerals industry.

The pilot will support E3 Lithium’s Clearwater project, which will draw lithium from under the Leduc oil field, Imperial’s historic discovery that first launched major oil and gas development in Western Canada. E3 Lithium’s proprietary technology is designed to extract the critical mineral from the lithium-rich brine, with potential for commercial development of battery-grade products.

“This exciting collaboration brings together Imperial’s long-standing commitment to research and technology to help test and scale E3’s lithium recovery technology,” said Jason Iwanika, director of commercial business development at Imperial. “We continue to advance the innovation and technologies needed to support the energy transition, working in collaboration with governments and industry to progress new opportunities from existing assets and sector expertise.”

“E3 Lithium and Imperial share an interest in the diversification of the Alberta economy, local job creation and sustainability,” said Chris Doornbos, CEO of E3 Lithium. “Leduc No. 1, Imperial’s first well into this reservoir, was one of Imperial’s most prolific oil discoveries in Alberta and transformed the provincial and Canadian economies, much like lithium has the potential to do. Having Imperial now working with E3 Lithium in exploring the redevelopment of Leduc into a world-class source of lithium is an exciting new chapter in Alberta and Canada’s story.”

The pilot project includes drilling Alberta’s first lithium evaluation wells, planned to be completed by the end of the third quarter of this year. Work will also focus on scaling up E3 Lithium’s proprietary technology, which brings the brine liquid to the surface where the lithium is removed and concentrated. This liquid is immediately returned underground as part of a closed-loop system. E3 Lithium’s PEA (preliminary economic assessment) estimates the first phase of development could produce approximately 20,000 tonnes of lithium hydroxide per year.

Under the agreement, E3 Lithium will continue to operate the Clearwater project and retain its IP, with technical and development support from Imperial in areas such as water and reservoir management. The agreement also includes access for E3 Lithium to freehold lands in the area, which are operated by Imperial.

As part of the agreement, Imperial has agreed to invest $6.35-million into E3 at a prepaid price of $1.86 per warrant and the issuance of 3,413,979 warrants. Each warrant provides the holder the option to exercise the warrant for one common share of E3. The warrants are immediately exercisable, non-transferrable, expire in 24 months and are non-refundable.

E3 Lithium shall, subject to the TSX Venture Exchange’s approval, pay a one-time 5% finder’s fee, being equal to $317,500 based on the amount of Imperial’s investment, in respect of this transaction. The finder has elected to take 25% of the fee in cash ($79,375) and 75% of the fee in common shares of E3 Lithium. Accordingly, E3 Lithium will issue the finder 128,024 shares on closing.

E3 Lithium is a lithium development company with 7 million tonnes of lithium carbonate equivalent (LCE) inferred mineral resources in Alberta and an NPV (net present value) with 8% on its Clearwater lithium project of US$1.1-billion with a 32% IRR (internal rate of return) pretax and US$820-million with a 27% IRR after tax. Through the successful scale-up of its DLE technology toward commercialization, E3 Lithium’s goal is to produce high-purity battery-grade lithium products.

Imperial Oil is Canada’s largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast.



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