Alberta-focused E3 Lithium (TSXV: ETL; OTC: EEMMF) has obtained a $27 million funding from the federal authorities’s Strategic Innovation Fund (SIF), the corporate stated on Monday.
The SIF, a program of Innovation, Science and Financial Improvement Canada gives funding for tasks in manufacturing, agri-food, clear know-how and well being and biosciences.
As Alberta’s main lithium developer and extraction know-how innovator, E3 Lithium now joins corporations reminiscent of Rio Tinto (ASX: RIO), Stellantis (NYSE: STLA) and Normal Motors (NYSE: GM) who’ve lately obtained funding below this program.
“E3 Lithium’s ground-breaking know-how will play an vital position in offering giant portions of battery grade lithium to the auto business whereas additionally creating top quality jobs for Canadians. This challenge will assist place Canada as a world chief in batteries and can strengthen the vital minerals sector within the Calgary area,” acknowledged François-Philippe Champagne, Canada’s Minister of Innovation, Science and Business.
The SIF funding helps all facets of E3’s useful resource and know-how improvement together with drilling, piloting of the corporate’s proprietary ion-exchange know-how for lithium extraction, course of improvement and engineering together with downstream lithium hydroxide conversion. The funding additionally helps extra improvement testing in the course of the feasibility section and the engineering and design of a definitive feasibility research.
“The breadth of the event prices this funding covers contributes considerably to the de-risking of our end-to-end challenge improvement as we progress in direction of a business facility producing battery grade lithium in Alberta. The Canadian authorities has dedicated to supporting the vital minerals provide chain; rising native Canadian provide begins with the uncooked supplies and Alberta has a major half to play in that future,” stated Chris Doornbos, president and CEO of E3 Lithium.
All eligible prices below this system are reimbursed to the corporate at 33.94% as much as a complete of $27 million. E3 can instantly apply for all eligible bills as of the preliminary software date in August 2021, which incorporates the prices related to its 2022 drilling program. The primary reimbursement from SIF is predicted to exceed $4 million.
Since 2017, E3 has secured roughly $35 million to fund its improvement during the last 5 years, unique of the SIF funding. The SIF funding gives funding stability with out share dilution as the corporate works in direction of its first lithium manufacturing in Alberta.
E3 presently holds one of many largest inferred lithium sources amongst its friends with 24.3 million tonnes of lithium carbonate equal, hosted within the world-class Leduc Aquifer. This useful resource covers simply 69% of the firm’s allow space in south-central Alberta.
As outlined in E3’s preliminary financial evaluation, its Clearwater lithium challenge has an after-tax web current worth (discounted at 8%) of US$820 million with a 27% inner fee of return.
Shares of E3 Lithium jumped 16.3% by midday in Toronto following the announcement, sending the lithium firm’s market capitalization to $149 million.