Development company E3 and lithium producer Livent Metals have kicked off their joint development project through which they plan to advance E3’s ion-exchange direct lithium extraction process on a lithium project in Alberta, Canada.
Livent has contributed the initial $1.5-million in relation to the $5.5-million joint development agreement, which was announced in September.
The ultimate goal of the agreement is to develop a process to produce battery-quality lithium products from the lithium-enriched brines located in the Leduc formation in Alberta.
"We are thrilled to be working with Livent to advance our proprietary process and the Alberta lithium project," said E3 CEO Chris Doornbos.
Livent will have the option to convert its $5.5-million investment into 6 229 368 common shares in the capital of E3, representing 19.9% equity ownership of the junior. Should the NYSE-listed lithium producer elect to proceed with the conversion, it could appoint one member to E3's board.
In conjunction with the initial funding by Livent of the jointly owned and newly incorporated joint development company, and in accordance with the terms of its financial advisory agreement with Hampson Equities (HEL), E3 has agreed to pay HEL a cash fee of C$119 610 and issue HEL 109 935 warrants, each warrant being exercisable into a common share of E3 at a price of C$1.17 a share.
E3 has 6.7-million tonnes of lithium carbonate equivalent inferred mineral resources in Alberta.