Business
International Battery Metals Completes US$6.4 Million Strategic Private Placement
VANCOUVER, BC and HOUSTON, June 20, 2024 /CNW/ - International Battery Metals Ltd. (the "Company"), is pleased to announce that it has completed a subsequent cl
About this update from International Battery Metals Ltd
[{"type":"text","content":" VANCOUVER, BC and HOUSTON, June 20, 2024 /CNW/ - International Battery Metals Ltd. (the \"Company\"), is pleased to announce that it has completed a subsequent closing of its previously announced (April 26, 2024, and May 31, 2024) strategic private placement (the \"Private Placement\"). Pursuant to the Private Placement, the Company issued 11,478,246 units (each a \"Unit\"), with each Unit being issued at a deemed price of CAD$0.76632, for aggregate proceeds of USD$6,430,772 (approximately CAD$8,796,010). 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 was completed with EV Metals VI LLC, a private company controlled by Jacob Warnock, a director of the Company (\"EV Metals\"), and funds and accounts managed by Encompass Capital Advisors LLC (\"Encompass\"). Encompass is participating in the Private Placement pursuant to certain pre-emptive rights granted under the terms of an Investment Agreement dated effective April 21, 2023. 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 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 securities under the United States Securities Act of 1933. MI 61-101 Disclosure In connection wit...