E3 Lithium Closes Bought Deal Public Offering

E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), “E3 Lithium” or “the Company,” Alberta’s leading lithium developer and extraction technology innovator, today announced that it has closed the “bought deal” public offering as previously announced on May 30, 2023, for gross proceeds of C$5,623,837 (the “Offering”), including partial exercise of the overallotment option for proceeds of C$623,837.

Details of the Offering

The Offering was led by Red Cloud Securities Inc. and included Eight Capital (collectively, the “Underwriters”), with institutional participation accounting for the majority of the Offering. There was strong participation from E3 Lithium directors, officers and staff which represented C$312,499 of the total Offering.

Pursuant to the underwriting agreement, the Underwriters received a cash commission of $318,080, equal to 6.0% of the gross proceeds less insider participation raised under the Offering, and also received 141,369 non-transferable broker warrants of the Company (the “Broker Warrants”) equal to 6.0% of the number of gross shares issued less insider participation. Each Broker Warrant entitles the holder to purchase one common share of the Company at a price of C$2.25 for a period of 24 months from the date of issuance. Under the Offering, the Company issued 2,499,483 common shares at a price of C$2.25 per common share and currently has 67,518,665 shares outstanding.

Use of Proceeds

E3 Lithium completed the Offering with the view of protecting the balance sheet and having a strong working capital balance entering 2024. The Company’s plans for the rest of 2023 remain among the largest and most ambitious E3 Lithium will complete since inception. As referenced in the Prospectus Supplement⁽¹⁾ filed on June 1, 2023, the estimated expenditures heading into 2024 is approximately C$20.9M, which does not include the receipt of any funds from awarded government grants, estimated at approximately C$7.3M over the next 12 months. Any government funds received and remaining at the end of 2023 will be put towards the Feasibility Study and general working capital in 2024. A summary of the use of proceeds is outlined below: