E3 Metals Corp. Closes Fully Subscribed Non-Brokered Private Placement

E3 Metals Corp. Closes Fully Subscribed Non-Brokered Private Placement

HIGHLIGHTS

º  E3 Metals completes a non-brokered private placement:

•  Fully subscribed raising with gross proceeds of $903,200

•  738,666 flow through common shares (the “Flow Through Shares”) at a price of $0.60 per Flow Through Share

•  920,000 non-flow through common shares (the “Common Shares”) at a price of $0.50 per Common Share

Vancouver, BC (FSCwire) - E3 METALS CORP. (TSX-V: ETMC, FSE: OU7A) (the “Company” or “E3 Metals”) ”) is pleased to announce it has completed a fully subscribed private placement, raising gross proceeds of $903,200. The non-brokered private placement (the "Offering") includes a combination of (a) 920,000 non-flow through common shares (the “Common Shares”) at a price of $0.50 per Common Share and (b). 738,666 flow through common shares (the “Flow Through Shares”) at a price of $0.60 per Flow Through Share

Chris Doornbos, President and CEO of the Company, stated: “We are very pleased to have closed this oversubscribed common share private placement and welcome our new shareholders to the Company. Inclusive of the Offering, the Company has raised approximately $1,760,000 over the past 6 months and after closing the Offering, has only 15,404,687 shares issued and outstanding.  The completion of this financing will allow us to progress the development of our Alberta Lithium Project (the “Project”) at a quicker pace. The flow-through shares will be employed directly to fund lithium sampling, leading to a potential NI 43-101 resource, and lithium extraction test work (metallurgical testing). We are particularly pleased with the fact that we have been able to attract sophisticated high net worth investors who have invested for the potential of our Project and, in part, to leverage to the market capitalisation upside. We look forward to keeping our investors apprised of our progress.”

The gross proceeds from the sale of the Flow Through Shares will be used to incur Canadian Exploration Expenses that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada) on the Company’s mineral properties in the aggregate amount equal to the total amount of the gross proceeds raised from the issue of Flow Through Shares (the “Commitment Amount”). The Company will renounce these expenses pursuant to subsection 66(12.6) in conjunction with subsection 66(12.66) of the Income Tax Act (Canada) to the subscribers in an amount equal to the Commitment Amount with an effective date no later than December 31, 2017.

All securities issued under the Offering are subject to a four-month hold period from the date of issue in accordance with applicable securities laws. In connection with the Offering, the Company has paid finders' fees of $51,254 and issued 131,866 non-transferable finders' warrants (the “Finder’s Warrants”) to certain finders in accordance with applicable securities laws and the policies of the TSX Venture Exchange. Each Finder’s Warrant entitles the holder acquire one Common Share at a price equal to $0.50 for a period of 12 months from the closing date of the Offering, subject to acceleration as more particularly described in the Company’s news release of July 18, 2017.

Mike O’Hara, director of the Company, subscribed for 10,000 Flow Through Shares under the Offering. The subscription by Mr. O’Hara constitutes a related-party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Because the value of the subscription is less than 25 per cent of the Company’s market capitalization, it is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

ON BEHALF OF THE BOARD OF DIRECTORS

Chris Doornbos, P.Geo
President & CEO


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

DIRECTORS

Chris Doornbos
Paul Reinhart
Jeremy Read
Mike O’Hara
Peeyush Varshney

 

CONTACT INFORMATION
205 – 227 10th St NW
Calgary, AB T2N 1V5
+1 (877) 319-7634
admin@e3metalscorp.com
e3metalscorp.com

 



Tuesday, August 15, 2017 - 3:05 AM EDT

E3 Metals Corp. to Acquire Prospective New Land Position Strategic to Developing Mineral Resources in the Exshaw Project Area and Fully Subscribes Non-Brokered Private Placement

HIGHLIGHTS

E3 Metals Corp. has entered into a binding term sheet to acquire three Metallic and Industrial Minerals (MIM) permits located in the Exshaw Project Area from Fathom Minerals Ltd., a private mineral exploration company

The three MIM permits are strategically located in the Exshaw Project Area and increases E3 Metals Leduc Reservoir land holdings to over 500,000ha

E3 Metals is currently conducting the initial sampling for lithium concentrations from the Leduc Reservoir in this area

Historic sampling results across this new area range from 75mg/L to 83mg/L lithium, and as high as 135mg/L lithium, directly adjacent and within the same reservoir.

E3 Metals fully subscribes private placement announced July 18, 2017 – will proceed to seek final TSXV acceptance

Vancouver, BC (FSCwire) - E3 METALS CORP. (TSX-V: ETMC, FSE: OU7A) (the “Company” or “E3 Metals”) is pleased to announce that it has entered into a binding term-sheet (the “Term Sheet”) to acquire three additional Metallic and Industrial Minerals (“MIM”) Permits (the “Permits”) from Fathom Minerals Ltd. (“Fathom”), a private exploration company, in the Exshaw Project area. Pursuant to the terms of the Term Sheet, E3 Metals will acquire (i) a 100% interest in the Permits and (ii) all technical data and reports related to the Permits in Fathom’s possession, in consideration of:

1.  CAD$35,000; and

2.  350,000 common shares of the Company on closing, 150,000 of which will be subject to a voluntary one-year escrow restriction.

E3 Metals Corp. existing Metallic and Industrial Minerals Permits (blue) are adjacent to the new acquisition Permits from Fathom Minerals Ltd. (orange). Eighteen wells in the new Permit areas are actively producing, and are potentially available for sampling (green diamonds). Historic sampling locations with tested lithium concentrations are displayed and graduated for Li concentration in mg/L.

Approximately 18 active wells are producing hydrocarbons and petro-brine within this new Permit area that have not been tested historically.  The new Permits are adjacent to E3 Metals existing MIM permits and represent a strategic acquisition for the Company that covers over 26,000 ha of prospective Leduc Reservoir. The proximity to E3 Metals’ existing land holdings and the available well infrastructure for sampling will allow the Company to increase the areal extent of land that could be potentially included within a mineral resource.  E3 Metal’s total land position is now over 500,000 ha, all of which covers the prospective Leduc Reservoir.

Historic sampling conducted across the permit area has delineated lithium concentrations ranging from 75mg/L to 83mg/L.  Samples collected immediately adjacent to the new Permits have lithium concentrations of up to 135mg/L. E3 Metals plans to conduct additional sampling across the new Permit area, as part of the larger program, to confirm historical lithium concentration results. 

The Leduc Reservoir is well-known for the prolific production of oil and gas, due to the unique properties of this reservoir. Importantly, the Leduc Reservoir allows for both large volumes of fluid to be trapped in the rock, and the ability to move large volumes of fluid easily to surface.  Evaluation of the Leduc Reservoir has shown that a single vertical well has the ability to produce as much as 20,500m3/day of water when completed to the bottom of the reservoir.  The combination of anomalous lithium concentrations and the potential high production rates of petro-brines, suggests the Leduc Reservoir has the potential to be a large-scale producer of lithium.

Historical sampling results outlined within this announcement and additional technical information regarding the Alberta Lithium Project are available in E3 Metals’ Technical Report dated May 18, 2017 Geological Introduction to E3 Metals Corp. Clearwater and Exshaw Lithium-Brine properties In South Central Alberta, authored by Apex Geoscience Ltd.  The Technical Report has been posted and is available on SEDAR (www.sedar.com) and on our website (www.e3metalscorp.com/documents).

Further to the Company’s news release of July 18, 2017 announcing a non-brokered private placement for aggregate gross proceeds of up to $902,000 (the “Offering”), the Company is pleased to announce that it has fully subscribed the Offering, and will proceed to seek final TSX Venture Exchange acceptance of the Offering shortly. The Company is considering accepting oversubscriptions, and will provide further details on closing.

About Lithium

The main driver behind the increase in demand for lithium, and the excitement for lithium as a commodity, is the growth of high efficiency lithium-ion battery production globally.  Although Tesla is at the forefront of the lithium revolution in recent years, the lithium-ion battery has solidified itself as the battery of choice for automakers and mobile technology such as laptops and mobile phones.  Continuously, additional car manufacturers announce movement of their production into electric cars. Announcements by Volkswagen, as well as Volvo (which announced that its entire production by 2019 will contain electric motors), are evidence of the move to electric vehicles.  These electric cars currently rely on lithium-ion batteries to provide the high efficiency required to generate the range buyers expect. 

E3 Metals believes rapid growth for lithium as a bulk commodity will be further enhanced by the expanding large-scale battery market, such as the Los Angeles battery backup facility Tesla has recently completed.  Adelaide, South Australia, has announced its intent to build a backup battery facility 5x the size of the Los Angeles facility.  This continual movement to storing power using lithium-ion batteries reinforces E3 Metals’ belief that the demand for lithium as a commodity is only getting started.

About E3 Metals Corp

E3 Metals is a publicly listed mineral exploration and development company (TSXV: ETMC). The Company’s focus is on exploring for and ultimately developing lithium in an efficient and environmentally responsible manner. This includes the development and potential repurposing of oil and gas infrastructure in Alberta to produce lithium from Leduc formation water.  More information about E3 Metals can be found our website by visiting: www.e3metalscorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS,

Chris Doornbos, President & CEO
E3 METALS CORP.

 

Chris Doornbos (P.Geo), President, CEO and a Director of E3 Metals Corp. is a Qualified Person as defined by National Instrument 43-101 and has read and approved the technical information contained in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release includes certain forward-looking statements concerning domestic and global demand for lithium, lithium use by the automotive industry, lithium ion battery use by the consumer electronics industry, lithium ion battery use by municipalities, lithium use by the battery industry and demand for lithium in high-efficiency batteries, the exploration and development activities proposed to be undertaken by the Company, the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, , new technology or mineral extraction processes, competitive risks and the availability of financing, as described in more detail in our recent filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward looking statements except as required by applicable law.

To view this press release as a PDF file, click onto the following link:

public://news_release_pdf/E3Metals08152017_0.pdf

Source: E3 Metals Corp. (TSX Venture:ETMC)

 

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Tuesday, July 18, 2017 - 7:00 AM EDT

E3 Metals Corp. Begins Well Sampling Program Testing for Lithium and Announces Non-Brokered Private Placement of up to $902,000

Highlights

E3 Metals has initiated the first round of sampling of Petro-Brine for lithium at active oil and gas producing wells across the Alberta Lithium Project permit area

E3 Metals is collaborating with multiple oil and gas producers who have provided access and their assistance in the collection of the samples 

Details of the Private Placement:

Up to 670,000 flow-through common shares of the Company (“Flow-Through Shares”) at a price of $.60 per Flow-Through Share.

Up to 1,000,000 non flow-through common shares of the Company (“Common Shares”) at a price of $.50 per Common Share. 

Vancouver, BC (FSCwire) - E3 METALS CORP. (TSX-V: ETMC, FSE: OU7A) (the “Company” or “E3 Metals”) is pleased to announce that it has initiated the first round of sampling (the “Sampling Program”) for lithium at active oil and gas wells across the Company’s Alberta Lithium Project permit areas. The Company has also arranged a non-brokered private placement to raise gross proceeds of up to $902,000 (the “Offering”).

The initial Sampling Program will begin this week and is expected to continue on an on-going basis for the next 2 to 3 months.  The Company is focused on sampling areas to confirm the historic results reported in E3 Metals’ Technical Report dated May 18, 2017 Geological Introduction to E3 Metals Corp. Clearwater and Exshaw Lithium-Brine properties In South Central Alberta, authored by Apex Geoscience Ltd. (available on SEDAR and on the Company’s website at e3metalscorp.com). This will be an important component of the information required to assist E3 Metals with completing an initial Mineral Resource estimate, as defined by National Instrument 43-101.  E3 Metals will also be sampling portions of the Leduc Reservoir that are not proximal to historic results and have yet to tested for lithium.

The Company has been provided access by several operators to wells and batteries for collection of petro-brine samples to determine the concentration of lithium contained within. The Sampling Program is occurring at multiple locations within the Company’s Metallic and Industrial Minerals (MIM) Permit area.  After the samples are collected in the field, they will be transported to accredited laboratories for analytical tests.  The first results from the Sampling Program are expected to be available within 6 to 8 weeks. E3 Metals would like to thank the operators collaborating with the Company in relation to the Sampling Program.

The Offering will consist of a combination of (a) up to 670,000 Flow-Through Shares at a price of $.60 per Flow-Through Share and (b) up to 1,000,000 Common Shares at a price of $.50 per Common Share.  The Company has reserved a 15% oversubscription option. 

In connection with the Offering, the Company has agreed to pay finders (“Finders”) a cash fee in an amount up to 7.0% of the gross proceeds of the Offering (the “Finder’s Fee”), to be paid at closing out of the gross proceeds raised from the non flow-through portion of the Offering. As additional consideration, the Company will grant to the Finders common share purchase warrants (the “Finder’s Warrants”) entitling the Finders to subscribe for up to that number of common shares equal to 10.0% of the aggregate number of Flow-Through Shares and Common Shares sold in the Offering. Subject to regulatory approval, each Finder’s Warrant will be exercisable to acquire one common share of the Company at a price equal to $.50 for a period of 12 months after the closing date of the Offering, subject to acceleration. If at any time between the Finder’s Warrants’ expiry date and the date that is four months and one day from the closing date, the closing price of the Company’s common shares on the TSX Venture Exchange is equal to or greater than $.80 for 20 consecutive trading days, then the Company may, at its sole option, elect to provide notice (the “Acceleration Notice”) to the holders of the Finder’s Warrants by news release that the Finder’s Warrants will expire at 4:00pm Pacific Time on the date that is 30 days from the Acceleration Notice (the “Accelerated Expiry Date”).  In such instance, all Finder’s Warrants that are not exercised prior to the Accelerated Expiry Date shall expire on such date.  This acceleration provision matches the acceleration provision applicable to share purchase warrants issued under the Company’s last private placement.

The net proceeds received from the Offering will be used, in part, to advance the timing of the Company’s plans to complete a Mineral Resource estimate and for the research and development of potential lithium extraction technology. The gross proceeds received by the Company from sale of the Flow-Through Shares will be used to incur Canadian Exploration Expenses that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s mineral properties in the aggregate amount equal to the total amount of the gross proceeds raised from the issue of Flow-Through Shares (the “Commitment Amount”). The Company will renounce these expenses pursuant to subsection 66(12.6) in conjunction with subsection 66(12.66) of the Income Tax Act (Canada) to the subscribers in an amount equal to the Commitment Amount with an effective date no later than December 31, 2017. The net proceeds from the sale of the Common Shares will be used to finance the Company’s petro-brine properties in south-central Alberta and for general working capital purposes. All securities issued under the Offering will be subject to a four-month hold period from the date of issue in accordance with applicable securities laws. The Offering is subject to acceptance of the TSX Venture Exchange.

ON BEHALF OF THE BOARD OF DIRECTORS,

Chris Doornbos, President & CEO
E3 METALS CORP.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

This news release includes certain forward-looking statements concerning the use of proceeds of the Offering, the future renunciation of Canadian Exploration Expenses that are flow-through mining expenditures, the tax treatment of the Flow-Through Shares, the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the future tax treatment of the Flow-Through Shares, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward looking statements except as required by applicable law.

To view this press release as a PDF file, click onto the following link:

public://news_release_pdf/e3metals07182017.pdf

Source: E3 Metals Corp. (TSX Venture:ETMC)

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E3 Metals Corp Acquires 390,000 Hectares of Additional Metallic and Industrial Minerals Permits Strategically Positioned Over the Prolific Leduc Reservoir in Alberta

 

Highlights

Vancouver, British Columbia (FSCwire) - E3 METALS CORP. (TSX.V: ETMC) (the “Company” or “E3 Metals”) is pleased to announce that it has been granted 389,934 hectares (ha) of strategically positioned Metallic and Industrial Minerals (“MIM”) permits in E3 Metals’ core area in southern Alberta.  This brings E3 Metals’ total MIM permit area to 477,898 ha in Alberta, located over some of the most prospective areas for lithium rich Leduc formation water (Petro-Brine) according to historical testing and E3 Metals’ internal technical evaluation (Figure 1).  The Company is now the largest holder of consolidated MIM Permits over the Leduc Reservoir in Alberta. The acquisition of these additional permits secures all of the crown rights to what the Company targeted as the most prospective ground for lithium Petro-Brines in Southern Alberta.

To view the graphic in its original size, please click image:

Figure 1: E3 Metals Corp Metallic and Industrial Mineral Permits (blue), Leduc depositional edge (purple), other companies MIM Permits (light grey), oil (green) and gas (red) accumulations

Oil and gas accumulations in the Leduc Reservoir represent only a small fraction of the total fluid contained within the reservoir.  Lithium is contained within the Petro-Brine, which exists not only directly below the oil and gas accumulations, but also laterally, throughout the entire reservoir (Figure 2).  The majority of the historical testing for lithium within the Leduc Reservoir has demonstrated that lithium is present at concentrations that are considered anomalous (>50mg/L) throughout the formation water.  E3 Metals acquired its initial permits over areas of oil and gas production due the availability of access to Petro-Brine to sample for lithium.  Historic results show that lithium concentrations in and around E3 Metals’ permit areas range as high as 135mg/L, as described further in its Technical Report dated May 18, 2017 detailed below. As the Petro-Brine is present across the entire reservoir, E3 Metals believes that lithium concentrations are also likely to exist throughout the entire reservoir.  

The Leduc Reservoir is world renowned for the production of oil and gas due to the unique properties of this reservoir, which allows for both large volumes of fluid to be trapped in the rock and the ability to move large volumes of fluid to surface.  These same properties have shown that a single vertical well has the ability to produce as much as 20,500m3/day of water when completed to the bottom of the reservoir.  This combination of anomalous lithium concentrations and the potential high production rates of petro-brines, suggests the Leduc Reservoir has the potential to be a large-scale producer of lithium.

E3 Metals plans to sample as many actively producing wells as possible across the permit area in the coming months to determine the lithium concentrations across a larger extent of the Leduc Reservoir.  This sampling will allow for potentially higher lithium concentration areas to be identified, following which E3 Metals plans to complete a resource estimate under National Instrument (“NI”)-43-101 reporting standards.

To view the graphic in its original size, please click image:

Figure 2: Conceptual Model of Oil Pools and Petro-Brine in the Leduc Reservoir at Innisfail and Wimbourne. Lithium is contained within the Petro-Brine denoted in blue.Green and orange denote oil and gas, respectively

 

Technical Overview

 This major land acquisition is part of E3 Metals’ strategic staged approach to acquiring permits in Alberta.  The initial acquisition of E3 Metals’ original 10 permits, located in areas with oil and gas (collectively; hydrocarbon) production, are in close proximity to available oil and gas infrastructure.  In these areas, hydrocarbons occur above the oil/water contact.  In this portion of the Leduc Reservoir, the production of hydrocarbons is associated with the production of large amounts of formation water, especially later in the production lifecycle, as is the case in E3 Metals’ permit area.  This existing infrastructure from hydrocarbon production allows E3 Metals to sample the Petro-Brine to determine lithium concentrations from producing wells.  The ability to complete sampling from the existing infrastructure provides E3 Metals with significant cost savings, as no exploration drilling is required.

This latest acquisition of land (51 new permits) reflects E3 Metals’ acknowledgement of the broader scope of the lithium opportunity in Alberta.  This is because the lithium bearing Petro-Brine contained within the Leduc reservoir, as a whole, is significantly larger in size than where the oil and gas is present (Figure 1 and Figure 2).  In both a lateral and vertical sense, hydrocarbons occupy only a small percentage of the total volume in the reservoir, located in areas referred to as traps.  Both within and outside of hydrocarbon traps, E3 Metals believes all of the Leduc formation water is prospective for anomalous concentrations of lithium.  E3 Metals has now expanded its MIM permit holdings to include the entirety of the Leduc reservoir as a result of this understanding.

Historical testing in E3 Metals’ permit areas has indicated the presence of enriched amounts of lithium (>50 mg/L) within the Leduc reservoir. E3 Metals has permitted both tested and untested areas; all are located within the confines of the Leduc depositional edge.  These untested areas represent high-value exploration targets for E3 Metals, and is the primary reason E3 Metals permitted these additional exploratory areas.

The Leduc Reservoir is a Devonian-age ancient reef complex, analogous to the Great Barrier Reef on the east coast of Australia.  The Leduc reefs are located throughout Alberta; with thicknesses ranging from 100m to over 300m.  Most Leduc reefs in southern Alberta are all connected at the base by an aquifer called the Cooking Lake Formation.  The Cooking Lake is the conduit through which many fluids, including hydrocarbons, migrated through and became trapped in the Leduc.

After deposition, the Leduc reefs were deeply buried and experienced several phases of dolomitization.  This process resulted in the creation of additional porosity (the ability of a rock to store water) and permeability (the ability for gas or fluids to flow through the rock). The enhancement of reservoir properties in the Leduc, combined with the presence of hydrocarbons and adequate pressure, is the reason why the Leduc formation is well established in Alberta for production of hydrocarbons.  Many Leduc wells have produced hydrocarbons profitably since 1947.

Hydrocarbons have historically been the focus of Leduc development.  However, in the Leduc formation, water is present in extremely large volumes below the hydrocarbons.  Consequently, a well’s oil production over time will decrease while the amount of formation water increases. This is referred to as an increasing water cut.  As oil and gas pools in the Leduc mature, their water cuts can increase to as high as 95% or more, meaning that only 5% of the total fluid volume produced is hydrocarbon, and the rest is Petro-Brine. These fluids in the Leduc formation are held in place under pressure, and this pressure varies spatially within the reservoir based on the internal architecture of the formation and regional flow magnitudes.  In some areas, the Leduc has been found to produce water to surface under its own pressure during formation tests.

As noted in E3 Metals’ Technical Report dated May 18, 2017 Geological Introduction to E3 Metals Corp. Clearwater and Exshaw Lithium-Brine properties In South Central Alberta, authored by Apex Geoscience Ltd. (available on SEDAR and on the Company’s website at e3metalscorp.com), an independent study was completed by GLJ Petroleum Consultants, which demonstrated that a single vertical well in the Leduc Reservoir is able to deliver at least 5,000m3/d at an average permeability of 20 millidarcies (mD).  The vertical well deliverability increases up to 20,500m3 at 80 mD. Horizontal wells (wells that penetrate the Leduc and turn horizontally at depth to access more reservoir), can provide an increased deliverability of at least 8,100 m3/d at 20 mD and 26,500 m3/d at 80 mD.

In addition to the massive volume of water available in the Leduc formation, historical testing of the Leduc Petro-Brine in E3 Metals’ permit areas indicate that the waters contain anomalous amounts of lithium. Anomalous concentrations are defined as being greater than 50 ppm. The concentration of anomalous lithium in the formation water varies by area, relating to potentially geological and hydrodynamic influences.

While many of the Devonian reservoirs in Alberta contain elevated amounts of lithium, the greatest concentrations of lithium in southern Alberta are located within the boundaries of the Leduc formation depositional edge. This co-location of Leduc reservoir and enriched lithium is the basis for E3 Metals’ exploratory permits located in areas with no historical testing.  E3 Metals expects that anomalous lithium concentrations are present across the entire Leduc reservoir, both in areas containing hydrocarbons and not.

Chris Doornbos, P.Geo., E3’s President and CEO is the qualified person who has reviewed and is responsible for the technical information contained in this news release.

Royalty on Clearwater MIMs

E3 Metals announces that it has entered into an amendment to the original acquisition agreement under which its wholly owned subsidiary acquired seven MIM permits namely 9316060174-9316060180 (the “Clearwater Permits”) to clarify the grant of a 2.25% Gross Overriding Royalty (the “Royalty”) on the Clearwater Permits to the original owner under standard terms.  The Royalty can be purchased by E3 Metals on or before September 10, 2020 for a total of $600,000 or a portion of the Royalty can be purchased at a rate of $75,000 for every 0.25%.

 

About Lithium

The main driver behind the increase in demand for lithium, and the excitement for lithium as a commodity, has been significantly increased production globally of high efficiency lithium-ion batteries.   Although Tesla is at the forefront of the lithium revolution in the recent years, the lithium-ion battery has solidified itself as the battery of choice for automakers and mobile technology such as laptops and mobile phones.  Continuously, additional car manufactures announce their movement of their production into electric cars.  Recent announcements by Volkswagen, as well as Volvo (who announced that its entire production by 2019 will contain electric motors), are recent evidence of the move to electric vehicles.  These electric cars will rely on lithium-ion batteries to provide the high efficiency required to generate the range new buyers will be expecting.  E3 Metals believes that over the next few years, we will reach a tipping point in the shift in mentality when purchasing an automobile, as evidenced by Volvo’s recent production decision.

E3 Metals believes rapid growth for lithium as a bulk commodity will be further enhanced by the expanding large-scale battery market, such as the Los Angeles battery backup facility Tesla has recently completed.  Adelaide, South Australia, is set to build a backup battery facility 5x the size of the Los Angeles facility.  This continual movement to storing power using lithium-ion batteries demonstrates E3 Metals belief that the demand for lithium as a commodity is only getting started.

 

About E3 Metals Corp

E3 Metals is a publically listed mineral exploration and development company (TSXV: ETMC). The Company’s focus is on developing lithium in an efficient and environmentally responsible manner. This includes the development and potential repurposing of oil and gas infrastructure in Alberta to produce lithium from Leduc formation water.  More information about E3 Metals can be found our website by visiting: www.e3metalscorp.com.

 

To view this press release as a PDF file, click onto the following link:

public://news_release_pdf/e3metals07132017.pdf

Source: E3 Metals Corp. (TSX Venture:ETMC)

 



Thursday, June 29, 2017 - 8:30 AM EDT

E3 Metals Corp forms Advisory Committee and welcomes three new members

Highlights

E3 Metals Corp (TSX: ETMC) is pleased to welcome three members to its newly formed advisory committee.

Kevin Reinhart

Jean Croteau

Alex Rothwell

Vancouver, BC (FSCwire) - E3 METALS CORP. (TSX.V: ETMC) (the “Company” or “E3 Metals”) is pleased to announce that it has formed an advisory committee with the objective of assisting the company in developing the long and short term strategic direction for the company.  E3 Metals is pleased to welcome Kevin Reinhart, Jean Croteau and Alex Rothwell to the committee. The formation of the advisory committee follows E3 Metals Corp’s commitment to develop our Alberta Lithium Project with a solid foundation and continual foresight. Each member of the advisory board has been selected to add a specific skill set that will provide the company with well-rounded guidance moving forward.

Kevin Reinhart was part of the executive team for 20 years at Nexen, a publicly listed major upstream oil and gas company with an enterprise value of over $20 billion.   As CEO, he led the assessment and negotiation of the sale of the company to a Chinese state-owned enterprise (CNOOC Limited) on behalf of shareholders in 2013.  Kevin is a Chartered Professional Accountant and holds a Bachelor of Commerce degree from Saint Mary’s University in Halifax, Nova Scotia.

After beginning his career in auditing at Deloitte Touche, Jean Croteau has honed his acumen in the financial markets since 1986 as a portfolio manager and financial analyst in various positions held at large Canadian financial institutions in Toronto and Montreal. Now semiretired, his focus is on investing privately; mostly in the resource sector which remains his true passion. Jean also has an in-depth knowledge of the global macroeconomic and geopolitical backdrops and their incidence on the financial markets. He currently also sits on the Advisory Board of Newrange Gold Corp., where he provides advice on financial, market and corporate strategy. Jean is a Chartered Professional Accountant with Bachelor of Business Administration (BBA) from the University of Sherbrooke (1980). 

Alex Rothwell has over 20 years experience in the capital markets across a broad range of industries, having most recently served as President and Head of Equities for Macquarie Capital Markets Canada. Prior to Macquarie, he was a Senior Managing Partner and the Head of Institutional Sales at Orion Securities and a specialist advisor for Bunting Warburg. Over the course of his career he has developed a deep knowledge of, and connections to, the global network of mutual funds and pension fund investors that are active in Canadian equity markets. Alex has an MBA from the Ivey School of Business (1995) and holds a Bachelor of Chemical Engineering from McGill University (1991).

E3 Metals is looking forward to working closely with the newly formed advisory committee and thanks them for their continued support of E3 Metals and the development of our Alberta Lithium Projects.

DIRECTORS

Chris Doornbos

Paul Reinhart

Jeremy Read

Mike O’Hara

Peeyush Varshney

 

CONTACT INFORMATION

PO BOX 61187

Calgary AB T2N 4S6

+1 (877) 319-7634

admin@e3metalscorp.com

e3metalscorp.com

 

To view this press release as a PDF file, click onto the following link:

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Source: E3 Metals Corp. (TSX Venture:ETMC)

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E3 Metals Corp Signs Collaboration Agreement with the University of Alberta to Develop Technologies for Lithium Extraction

Highlights

E3 Metals Corp (TSX: ETMC) signs collaboration agreement with the University of Alberta.

E3 Metals Corp will be working with the University of Alberta’s Water Resource Sciences Chair, Dr. Daniel Alessi, and his team.

The collaboration includes applications for support from the National Science and Engineering Research Committee (NSERC).

 

Vancouver, BC (FSCwire) - (June 19, 2017) – E3 METALS CORP. (TSX.V: ETMC.H) (the “Company” or “E3 Metals”) is pleased to announce that it has signed a collaboration agreement with the University of Alberta (the “U of A”) for the purpose of developing lithium extraction process technology. The goal of this collaboration is to develop a cost-effective technology to extract lithium from brines, specifically the lithium-enriched Petro-Brines present within the company’s permit areas. E3 Metals will be working directly with Dr. Daniel Alessi, Assistant Professor, and Dr. Salman Safari, Postdoctoral Fellow.

Dr. Alessi is an Assistant Professor of geochemistry in the Faculty of Science at the U of A and is the Encana Chair in Water Resources. After completing his PhD at the University of Notre Dame in geochemistry, Dr. Alessi worked at the Swiss Federal Institute of Technology in the field of environmental microbiology, and then joined the University of Alberta in 2013. The Alessi Laboratory at the U of A investigates several important aspects of applied geochemistry to reduce risk and improve costs in environmental remediation and hydraulic fracturing. Now, through this collaboration, lithium extraction will be added to the impressive list of endeavors at the Alessi Laboratory.

Dr. Alessi is an expert in surface chemistry and remediation, having published more than 30-refereed papers in these research areas. His laboratory is equipped with state-of-the-art instrumentation to characterize brine metals chemistry. In addition to overseeing the project, Dr. Alessi will advise the team on developing lithium extraction methods and on the environmental footprint the extraction processes that are investigated.

Dr. Safari completed his PhD in chemical engineering at McGill University in 2015 and following that he worked for a chemical company as an industrial postdoctoral for almost a year. He joined the Alessi group as a postdoctoral fellow in October 2016 and since then he has been working on waste remediation and water treatment projects. His research interests lie in areas of water treatment, clean technologies, innovative natural products, and colloidal chemistry, in which he has published 6 journal papers and has made more than 20 conference contributions.

Dr. Safari’s research skills in water treatment, along with his engineering expertise, will be invaluable as Dr. Safari leads the Alessi team to gain a better understanding of the petro-brine chemistry and to devise an optimized, selective lithium extraction process compatible with E3 Metals’ brine and environment.  

The goals of this collaboration involve research and development in both pre-treatment and direct lithium extraction methods. As such, the U of A aim’s to develop a technology capable of direct lithium extraction without the requirement of pre-treatment of the brine, or a method that requires only minimal pre-treatment. In parallel, they will research and develop methods of pre-treating water for the filtration and precipitation of Calcium and Magnesium. Through these efforts, they aim to develop a clean lithium extraction technology that improves extraction efficiency, minimizes costs and improves lithium recovery from brines. The Alessi lab has already begun the initial research potion of the work and plans to initiate the testing with some of the first brine samples collected from our permit areas.

Applications for funding are being sought with the Natural Sciences and Engineering Research Council (NSERC).

E3 Metals looks forward to a productive collaboration with the University of Alberta, and is grateful to NSERC for helping to make this collaboration possible.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

To view this press release as a PDF file, click onto the following link:

public://news_release_pdf/e3metals06192017.pdf

 

Source: E3 Metals Corp. (TSX Venture:ETMC.H)

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E3 Metals Corp. Receives TSX Venture Exchange Approval for, and closes, acquisition of 1975293 Alberta Ltd. and files NI 43-101 Technical Report on Alberta Lithium Project

Highlights

  • E3 Metals Corp (TSXV: ETMC.H) receives final approval from the TSX Venture Exchange for the transaction to acquire 1975293 Alberta Ltd and the Alberta Lithium Project
  • E3 Metals Corp received approval from the TSX Venture Exchange for the Technical Report NI 43-101 for the Alberta Lithium Project


Vancouver, British Columbia (FSCwire) - E3 METALS CORP. (TSX.V:ETMC.H) (the “Company” or “E3 Metals”) is pleased to announce that it has received final approval from the TSX Venture Exchange (“TSXV”) and has closed its Fundamental Acquisition (as that term is defined in the policies of the TSXV) with 1975293 Alberta Ltd (“AlbertaCo”) whereby all outstanding securities of AlbertaCo have been exchanged for securities of E3 Metals (the “Transaction”) as described below.  As a result of the closing of the Transaction the Company has applied to upgrade its listing to Tier 2 of the TSXV and expects to complete same shortly.

 

Transaction Details

 

E3 Metals has paid AlbertaCo $150,000 and issued to the securities holders of AlbertaCo (i) a total of 6,000,000 common shares (the “Escrow Shares”) of the Company in exchange for 100% of the outstanding shares of AlbertaCo and (ii) 600,000 share purchase warrants (the “Warrants”) in exchange for 100% of the outstanding share purchase warrants of AlbertaCo.   Each Warrant is exercisable into one common share in the capital of the Company at an exercise price of $0.30 per share until April 19, 2020.  The Escrow Shares will be deposited in escrow and are subject to release in accordance with the Value Escrow regime prescribed by the TSXV (10% on closing, 15% every 6 months thereafter).  All securities issued will be subject to a resale restriction of four (4) months and one (1) day from their date of issuance.

 

E3 Metals commissioned APEX Geoscience Ltd. to prepare a National Instrument 43-101 Technical Report on the oilfield lithium brine (“Petro-Brine”) Clearwater and Exshaw properties in Alberta, Canada (collectively the “Alberta Lithium Project or the “Project).  The Technical Report has been posted and is available on SEDAR (www.sedar.com) and on our website (www.e3metalscorp.com/documents).

 

Summary of the NI 43-101 Technical Report

 

The Alberta Lithium Project is comprised of 10 Alberta Metallic and Industrial Mineral Permits (“Permit” or “Permits”) totaling 87,965 hectares (879.65 square kilometres) that can be further sub-divided into three separate areas, or groups of contiguous permits:

 

1.     Clearwater Sub-Property: 7 contiguous permits totaling 62,540.1 hectares;

 

2.     Exshaw (East) Sub-Property: 2 contiguous permits totaling 16,628.4 hectares; and

 

3.     Exshaw (West) Sub-Property: a single permit of 8,796.1 hectares.

 

E3 Metals’ permits have been staked for their oilfield Petro-Brine potential.  Certain oilfields saline formation waters sitting directly below oil and gas pools, or Petro-Brines, are known to contain medium to highly anomalous concentrations of lithium, and are therefore considered potential sources for large tonnages of lithium.  In Alberta, lithium-enriched formation water, greater than 50 mg/L, has been historically documented by government and industry to occur within the Devonian Beaverhill Lake (Swan Hills), Winterburn (Nisku), Woodbend (Leduc) and Wabamun groups (formations) of the Alberta Sedimentary Basin.  These reservoirs in Alberta are world-renowned for their oil and gas resources and are collectively known as the Devonian petroleum system, which was discovered at the Leduc No. 1 well near Leduc, Alberta, Canada on February 13, 1947.  The vast hydrocarbon reserves within Alberta’s Devonian strata are attributed to the abundance of mature, excellent to good quality reservoir rocks.

 

By nature, saline brine coexists with oil/gas in these highly porous and permeable reservoirs (or aquifers).  As such, Lithium Petro-Brine within the Alberta Lithium Project is accessible via oil/gas wells that have pumped the Petro-Brine (along with hydrocarbons) from Devonian aquifers situated at depths of between approximately 1,500 m to 3,500 m below the earth’s surface.  The Petro-Brine is essentially waste-water associated with hydrocarbon products. Currently, the extracted water is treated to separate and remove petroleum products and then is re-injected back into subsurface formations.  It is conceivable that existing water processing procedures could be modified to extract lithium and other elements from the Devonian aquifer systems; however at this stage of exploration there is no guarantee that lithium and associated elements (e.g., potassium, boron, and bromine) will be economically extractable from the brine with current technology.

 

E3 Metals has yet to conduct any Petro-Brine sampling, analytical work, drilling, recovery test work, or mineral resource estimate work at the Alberta Lithium Project.

 

Historical water chemistry data compilation shows that the Winterburn Group (Nisku Formation), Woodbend Group (Leduc Formation) and Wabamun Group contain the highest concentrations of lithium enriched Petro-Brine in the Project area.  E3 Metals has the mineral rights to all of these formations within our Permit areas, including the highly productive Leduc Reservoir.  Lithium concentrations range up to 135mg/L within the reservoir E3 Metals holds, within and directly adjacent to the Permit areas.

 

A reservoir analysis to determine potential water production was conducted using currently available data from oil/gas wells previously drilled.  Analytical models were created for vertical and horizontal wells in which the aquifer was assumed to be circular with constant pressure boundary at 17,200 m.  A ‘minimum required flow-rate’ value of 3,000 m3 of water per day sustained for 1,000 hours was used as a benchmark to estimate the minimum effective permeability required for the Project.  A minimum practically achievable bottom hole pressure of 500 kPa was used.  Based on these parameters, a minimum permeability of approximately 15 millidarcy (mD) was required to reach the minimum required flow-rate of 3,000m3/d.  The inflow performance relationship was then estimated for analytical models with: 1) average expected permeability (20 mD); and 2) highest expected permeability (80 mD).  The results for the vertical wells returned maximum water flow rates of 5,000 m3 per day (at 20 mD) and 20,500 m3 per day (at 80 mD).

 

For horizontal well simulations, the aquifer was modeled as a single homogeneous reservoir.  A well length of 1600 m and a minimum practically achievable bottom hole pressure of 1500 kPa was used.  It was found that a minimum permeability of around 5 mD was required to reach the minimum required flow-rate.  The inflow performance relationship was estimated for analytical models using three permeability scenarios: 1) lowest viable (5 mD); 2) average expected (20 mD); and 3) highest expected (80 mD).  Models for horizontal wells returned maximum water flow rates of 3,300 m3 per day (at 5 mD), 8,100 m3 per day (at 20 mD) and 26,500 m3 per day (at 80 mD).

 

Devonian petroleum system within the Clearwater and Exshaw properties represents a mature petroleum field, and therefore, generates large volumes of Petro-Brine.  That is, in the early history of this oilfield, most wells started out pumping hundreds to thousands of barrels of petroleum products per day, which required little active pumping to extract.  However, at present most of the wells produce excessive amounts of formation water in comparison to petroleum products due to increased pumping to generate crude oil.  

 

It is concluded that the Devonian petroleum system underlying E3 Metals’ Clearwater and Exshaw properties yield historical lithium-enriched Petro-Brine and that petro-operators in the area are active and continue to produce petroleum with large volumes of waste formation water.

 

Over the next 6 months, E3 Metals will focus efforts to identify key areas for, and proceed to conduct, lithium sampling as part of the overall Company strategy.  The purpose of this sampling is to confirm historical results in areas known to contain lithium as well as conduct sampling in areas where the Petro-Brine is expected to contain lithium, but has yet to be tested.

 

The longer-term goal for the Company is to complete the work necessary to develop a Mineral Resource over at least one area, likely multiple areas, within the Project.  The path the Company plans to take to accomplish this goal is outlined below.

 

  • Sample the Petro-Brine within the known lithium enriched areas

 

  • Explore new and untested areas for lithium enrichment in Petro-Brine by systematically sampling across our permit area

 

  • Identify a target area for our maiden Mineral Resource based on the results obtained

 

  • Develop a lithium extraction solution with a two-pronged approach

 

 

  • Working with lithium process companies and testing our brine with their existing process methodologies  Developing our own solution through key industry collaborations

 

 

  • Leverage the existing reservoir data available from the oil/gas industry to develop a reservoir model

 

  • Combine the reservoir model and lithium sampling results to complete E3 Metals’ maiden Mineral Resource strategically selected from one of our multiple project areas

In connection with the closing of the Fundamental Acquisition, Messrs. Karan Thakur, Marco Strub and Mervyn Pinto have resigned, and Chris Doornbos, Paul Reinhart, Mike O’Hara and Jeremy Read have been appointed directors of the Company.  Additionally Peeyush Varshney has resigned as President and Chris Doornbos has been appointed President and Chief Executive Officer.  Ms. Debbie Lew has been appointed Chief Financial Officer.  A brief background of each director and officer follows:

 

Chris Doornbos, President, Chief Executive Officer and Director

 

Mr. Doornbos has a broad range of experience in developing mineral projects across the globe.  His experience covers the spectrum from greenfields exploration to project development.  Mr. Doornbos has a strong technical background and has successfully driven projects through to the development stages, including a very successful record of expanding resources by using innovative and out-of-the-box thinking.  Mr. Doornbos emphasizes risk management, developing and managing an exceptional technical team and well-strategized project generation, with a clear focus on developing and capturing value for shareholders.  He is the CEO of Revere Development Corp. and was the Vice-President of Exploration for MinQuest Ltd.

 

Jeremy Read, Director

 

Mr. Read is a seasoned mineral resource industry executive, having worked on a broad range of precious and base metals projects in Australia, Africa, North America, India and Scandinavia.  He has wide-ranging experience in project generation, greenfields, brownfields and project development.  Mr. Read spent 11 years working for BHP in Africa and Australia, including several years as the manager of BHP's Australian exploration team.  From 2003, Mr. Read has concentrated on developing junior mineral resource companies, creating and capturing value for shareholders.  He has been the managing director of four Australian Securities Exchange-listed resource companies: Discovery Metals, Meridian Minerals, Avalon Minerals and MinQuest Ltd.  Mr. Read has also listed companies on the Alternative Investment Market in London and the Botswana Stock Exchange.

 

Mike O'Hara, Director

 

Mr. O'Hara is an oil and gas executive and registered professional engineer with 35 years of experience in founding, developing and managing profitable, growth-oriented oil and gas companies.  He has a solid record in the evaluation, negotiation and acquisition of high-quality oil and gas properties and joint venture opportunities.  Formerly, Mr. O'Hara was the president of Bernum Petroleum Ltd., president, director and founder of Xergy Processing Inc., and CEO, president, director and founder of Calahoo Petroleum Ltd., a Toronto Stock Exchange-listed exploration and production company, sold in 2000 to Samson Petroleum for approximately $130-million.

 

Peeyush Varshney, Director

 

Mr. Varshney has been actively involved in the capital markets since 1996 and has been a principal of Varshney Capital Corp., a private merchant banking, venture capital and corporate advisory firm, since 1996. Mr. Varshney obtained a bachelor of commerce degree (finance) in 1989 and a bachelor of laws in 1993, both from the University of British Columbia.  He then articled at a large regional business law firm in Vancouver, B.C., from 1993 to 1994 and has been a member of the Law Society of British Columbia since September, 1994. Mr. Varshney is also director of TSX-listed Mountain Province Diamonds Inc., and TSX Venture Exchange-listed Canada Zinc Metals Corp. and Margaret Lake Diamonds Inc.

 

Paul Reinhart, Director

 

Mr. Reinhart brings his over 30 years of experience in providing early-stage project financing and advisory services.  Mr. Reinhart's experience and expertise in the resource exploration business include Kokanee Explorations, Far West Mining and Bearing Resources. He is currently CEO of Sora Capital Corp., an investment issuer focused on the technology industry.  He is also president of Vanhart Capital Corp., a privately held investment company, specializing in financing and advisory services for early-stage companies.

 

Debbie Lew, Chief Financial Officer

 

Ms. Lew has been with Varshney Capital, a Vancouver-based merchant banking, venture capital and corporate advisory services firm, for over 16 years and took on the management role in finance and administration in 2006.  Ms. Lew obtained her designation as a CPA and CGA in 2007.  Ms. Lew is a director and/or officer of various publicly traded companies.

 

Mr. Chris Doornbos, President and CEO stated: “We are very pleased to have completed this transaction so quickly.  We entered into the original LOI on April 24th, and have now completed the acquisition of 1975293 Alberta Ltd. and E3 Metal’s complete reorganization.  I would like to thank all those who worked so hard to get this accomplished.  I’d also like to welcome all shareholders of our revitalized Company. We have entered into an exciting and emerging sector and have an energized management team ready to implement our go forward strategy.  We have many initiatives underway; we look forward to keeping you informed of our progress.”

 

CONTACT INFORMATION

PO BOX 61187

Calgary AB T2N 4S6

+1 587 324 2775

admin@e3metalscorp.com

e3metalscorp.com



To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/e3metals05312017.pdf

Source: E3 Metals Corp. (TSX Venture:ETMC.H)


Savannah Gold Corp. Announces the Signing of a Binding Letter Of Intent with 1975293 Alberta Ltd., Operating as E3 Metals

Not For Distribution to U.S. News Wire Services or For Dissemination in the United States.



Vancouver, British Columbia (FSCwire) - SAVANNAH GOLD CORP. (TSX.V:SAV.H) (the “Corporation” or “Savannah”) is pleased to announce that it has entered into a binding Letter of Intent (“LOI”) dated April 24, 2017 with 1975293 Alberta Ltd., operating as E3 Metals (“E3 Metals”). Savannah and E3 Metals will enter into a definitive Share Exchange Agreement (the “Definitive Agreement”) whereby all outstanding securities of E3 Metals will be exchanged for securities of Savannah (the “Transaction”), which constitutes a Fundamental Acquisition (as that term is defined in the policies of the TSX Venture Exchange (the “TSXV”)) by Savannah.  The final structure of the Definitive Agreement is subject to applicable corporate, securities and tax considerations. The Transaction is an arm’s length transaction.

 

On closing of the Transaction, it is anticipated that Savannah will change its name to E3 Metals Corp. and will carry on with the development of E3 Metals’ “petro-brine” projects in south-central Alberta.  The Corporation proposes to complete a reactivation and upgrade to Tier 2 on the TSXV following the Transaction.

 

About E3 Metals

 

E3 Metals is a private company incorporated under the Alberta Business Corporations Act and headquartered in Calgary, Alberta. Canada.  E3 Metals, is a lithium “petro-brine” exploration and development company focusing on the Clearwater and Exshaw Projects covering the Leduc reservoir in south-central Alberta.  These projects were specifically selected, and first to be staked in the region for lithium exploration, due to their ability to deliver the large volumes of water required for direct extraction of lithium from petro-brines.  Historical lithium concentrations in the region range as high as 140mg/L within the reservoir.  Ease of on-the-ground access and the large amount of existing infrastructure available associated with the production of oil and gas is the reason E3 Metals has focused its efforts in the region.  Centrally located around Red Deer, the city which is the hub for oil and gas service companies operating in the province, E3 Metals will look to leverage access to the existing infrastructure in order to lower both costs and risks for the assessment and potential development of its projects.

 

In Alberta, lithium is known to exist within the saline water (or “petro-brine”) that sits directly below certain very well understood oil reservoirs.  E3 Metals plans to systematically sample each of its project areas to determine the concentration of lithium over a significant area, far larger than historically sampled, and create a development strategy based on locating the areas of highest lithium concentrations within the reservoir.  E3 Metals will be able to use the large amount of data available on the reservoir’s physical properties from the oil and gas industry, allowing the Corporation to move quickly to developing a mineral resource.

 

“The ultimate goal of E3 Metals is to develop a project capable of producing in excess of 20,000t of lithium carbonate equivalent (LCE) per year.  Given the high water deliverability of the lithium petro-brine, E3 Metals believes its project goal is achievable” said Chris Doornbos, who will assume the role of President and CEO of the Corporation on closing of the Transaction.  “We believe that the listing of E3’s shares on the TSXV is a good strategic move for our company as it will allow E3 Metals to raise the necessary capital so that we can focus on launching and expanding our exciting and critical business.”

 

Upon completion of the Transaction, it is anticipated that certain of Savannah’s current management will resign and that representatives of E3 Metals with the requisite experience to manage the Corporation will be appointed officers, in order to satisfy the requirements of the TSXV.  Additionally, the board of directors of the Corporation will be comprised of five members as follows:

 

Proposed Directors and Officers of the Corporation

 

It is proposed that the following individuals will be appointed and/or remain directors and officers of the Corporation on closing:

 

Chris Doornbos, President, Chief Executive Officer and Director

 

Chris has a broad range of experience in developing mineral projects across the globe. His experience covers the spectrum from greenfields exploration to project development. Chris has a strong technical background and has successfully driven projects through to the development stages including a very successful track record of expanding resources by using innovative and out of the box thinking. Chris has experience in capital raising both privately and publicly, assisted in the founding of public junior mining companies and the sale and acquisition of mineral properties. Chris emphasises risk management, developing and managing an exceptional technical team and well-strategized project generation, with a clear focus on developing and capturing value for shareholders.  He is the CEO of Revere Development Corp. and was the Vice-President of Exploration for MinQuest Ltd.

 

Mike O’Hara, Director

 

Mike is an oil & gas executive and registered professional engineer with 35 years’ experience in founding, developing and managing profitable, growth oriented oil and gas companies.  He has a solid track record in the evaluation, negotiation and acquisition of high quality oil & gas properties and joint venture opportunities.  Formerly, Mike was the President of Bernum Petroleum Ltd, President, Director and Founder of Xergy Processing Inc and CEO, President, Director & Founder of Calahoo Petroleum Ltd., a TSX listed E&P company, sold in 2000 to Samson Petroleum for ~$130MM .

 

Jeremy Read, Director

 

Jeremy is a seasoned mineral resource industry executive, having worked on a broad range of precious and base metals projects in Australia, Africa, North America, India and Scandinavia.  He has wide ranging experience in project generation, greenfields, brownfields and project development. Jeremy spent 11 years working for BHP in Africa and Australia, including several years as the Manager of BHP’s Australian Exploration Team. From 2003 Jeremy has concentrated on developing junior mineral resource companies, creating and capturing value for shareholders.  He has been the Managing Director of four ASX listed resource companies; Discovery Metals, Meridian Minerals, Avalon Minerals and MinQuest.  Jeremy has also listed companies on the Alternative Investment Market in London and the Botswana Stock Exchange.

 

Paul Reinhart, Director

 

Paul brings his over 30 years of experience in providing early stage project financing and advisory services.  Paul’s experience and expertise in the resource exploration business includes Kokanee Explorations, Far West Mining and Bearing Resources.  He is currently CEO of Sora Capital Corp, an Investment Issuer focused on the technology industry. He is also President of Vanhart Capital Corporation, a privately held investment company, specializing in funding and advisory services for early stage companies.

 

Peeyush Varshney, Director

 

Peeyush has been actively involved in the capital markets since 1996 and has been a principal of Varshney Capital Corp., a private merchant banking, venture capital and corporate advisory firm since 1996.   Mr. Varshney obtained a Bachelor of Commerce degree (Finance) in 1989 and a Bachelor of Laws in 1993, both from the University of British Columbia.  He then articled at a large regional business law firm in Vancouver, British Columbia, from 1993 to 1994, and has been a member of the Law Society of British Columbia since September 1994.  Mr. Varshney is also director of TSX listed Mountain Province Diamonds Inc. and TSX Venture Exchange listed Canada Zinc Metals Corp. and Margaret Lake Diamonds Inc.

 

Debbie Lew, CFO
 

Debbie has been with Varshney Capital Corp, a Vancouver based merchant banking, venture capital and corporate advisory services firm, for over 16 years and took on the management role in finance and administration in 2006.  Ms. Lew obtained her designation as a CPA, CGA in 2007.  Ms. Lew is a director and/or officer of various publicly traded companies. 

 

Share Exchange Transaction

 

On closing of the Transaction, Savannah will pay E3 Metals $150,000 and issue to the shareholders of E3 Metals (i) a total of 6,000,000 common shares of the Corporation in exchange for 100% of the outstanding shares of E3 Metals and (ii) 600,000 share purchase warrants (the “Warrants”) in exchange for 100% of the outstanding share purchase warrants of E3 Metals.  Each Warrant will be exercisable into one common share in the capital of the Corporation at an exercise price of $0.30 per share until April 19, 2020.

 

The completion of the Transaction is subject to a number of conditions, including but not limited to, the execution of the Definitive Agreement, completion of satisfactory due diligence including the delivery and satisfactory review of the audited financial statements of E3 Metals and the approval of the Transaction by each of the TSXV and the board of directors of each of Savannah and E3 Metals.

 

Miscellaneous Terms

 

The securities to be issued in connection with the Transaction have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in Regulation S promulgated under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

 

Unless agreed between the Corporation and E3 Metals, the LOI will terminate on the execution of the Definitive Agreement.

 

About Savannah

 

The Corporation’s historical business activity has been related to the exploration and development of precious metals properties. Subsequent to completing the Transaction, the Corporation will not pursue precious metals exploration or development but will continue with the development of resource assets in the lithium sector.

 

Completion of the Transaction is subject to a number of conditions, including TSXV acceptance. The Transaction cannot close until the required approvals are obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

 

The TSX Venture Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.

 

ON BEHALF OF THE BOARD OF SAVANNAH GOLD CORP.

 

(Signed) “Praveen Varshney”

 

Praveen Varshney
President

 

For further information contact Peeyush Varshney at 604 684-2181.

 

Reader Advisory

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

This news release contains “forward-looking information” within the meaning of applicable securities laws relating to the proposal to complete the Transaction and associated transactions, including statements regarding the terms and conditions of the Transaction and the outlook of the business of E3 Metals. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the Transaction and associated transactions, that the ultimate terms of the Transaction and associated transactions will differ from those that currently are contemplated, and that the Transaction and associated transactions will not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities). The terms and conditions of the Transaction may change based on the Corporation’s due diligence and the receipt of tax, corporate and securities law advice for both the Corporation and E3 Metals. The statements in this press release are made as of the date of this release. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Corporation, E3 Metals, their securities, or their respective financial or operating results (as applicable).