Red Cloud - analyst - E3 E3 Lithium (TSXV:ETMC)
Big Oil Bets Big on Lithium; Imperial Buys into E3
Impact: Very Positive
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E3 Lithium, the newly rebranded name of E3 Metals, announced that it has entered a strategic collaboration agreement with major oil producer Imperial Oil (TSX:IMO, Not Rated), whereby Imperial will help advance E3’s Clearwater Li-brine project in Alberta by providing technical support and access to its freehold lands. In addition, Imperial agreed to invest $6.35M into E3. In our view, the agreement places a major stamp of approval on E3, and we expect this news to draw attention from both mining and O&G investors. This is the first time we have seen an oil company of Imperial’s size venture into lithium, which marks a historic event for the Canadian resource sector.
| KOBY KUSHNER, P.Eng., CFA
Mining Analyst | Red Cloud Securities Inc.
120 Adelaide St. W, Suite 1400
Toronto, ON M5H 1T1 |
| | c: 416.846.6164
w: redcloudsecurities.com |