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International Battery Metals Announces Subsequent Closing of Strategic Private Placement
VANCOUVER, BC and HOUSTON, May 31, 2024 /CNW/ - International Battery Metals Ltd. (the "Company"), is pleased to announce that it intends to complete a subseque
About this update from International Battery Metals Ltd
[{"type":"text","content":" VANCOUVER, BC and HOUSTON, May 31, 2024 /CNW/ - International Battery Metals Ltd. (the \"Company\"), is pleased to announce that it intends to complete a subsequent closing of its previously announced (April 26, 2024) strategic private placement (the \"Private Placement\"). Pursuant to the Private Placement, the Company expects to issue a minimum of 8,478,246 units (each, a \"Unit\") for a price of CAD$0.76632 per Unit, for gross proceeds of CAD$6,497,050 (USD$4.75 million). The Company may issue additional Units on the same terms, depending on whether certain parties will exercise existing pre-emptive rights in connection with the Private Placement. 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 CAD$0.9579 per Common Share. The Private Placement is being completed with EV Metals VI LLC, a private company controlled by Jacob Warnock, a director of the Company (\"EV Metals\"). 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 USD$237,500 (CAD$324,852), payable through the issuance of 423,912 Common Shares (the \"Structuring Fee\"). 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 United States as previously announced on January 11, 2024 and May 6, 2024, and for general working capital purposes. The expanded production capacity will be achieved by adding an additional modular set of extraction columns into the existing framework. In order to manage the increase production, the Company will also increase the size of the filtration and reverse osmosis units. The Company may complete additional private placement financings of up to approximately USD$8,814,000 on substantially similar terms as the Private Placement. 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 secur...