E3 Metals Signs Binding Agreement to Acquire Bashaw Permit Area, Provides Corporate Update and Provides Notice of Warrant
Acceleration
Vancouver, British Columbia (FSCwire) - E3 METALS
CORP. (TSX-V: ETMC, FSE: OU7A, OTC: EEMMF) (the “Company”,
“E3” or “E3 Metals”) is pleased to have signed a definitive agreement with Fathom Minerals
Ltd. (“Fathom”) to acquire Fathom’s Bashaw Permits in the Company’s Exshaw Project area (the
“Bashaw Permits”). E3 Metals has successfully sampled this area and will focus the next mineral
resource based on these results.
Pursuant to the terms of the asset purchase agreement, E3 Metals has acquired, subject to TSX Venture Exchange
approval (i) a 100% interest in the Bashaw Permits and (ii) all technical data and reports related to the Bashaw 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.
Please refer to the Company’s news release of August 15, 2017 for further details.
Corporate Update
E3 Metals reached a critical milestone in late 2017 by completing the largest Petro-Lithium mineral resource. This
globally significant total combined inferred resource of 2.83M tonnes LCE has demonstrated that there is enough brine production
available to develop a potential project of 50,000 tonne LCE/year for over 35 years. The Company has now reached a pivot
point where the focus will be on metallurgical and process test work with the goal of developing a lithium extraction flow sheet
over 2018. This is the last key step towards commercialization of our project, as the reservoir and potential Petro-Lithium
production is well understood. The Company is leveraging hundreds of millions of dollars in data and infrastructure created
through oil and gas exploration and development. Please refer to the Company’s announcements of November 15, 2017 and November
20, 2017 – available on the Company’s website – for more information in respect of the Company’s mineral resource estimate.
The Company believes that significant shareholder value will be created while de-risking the project by
demonstrating lithium extraction process test results. The Company intends to focus on advancing the extraction test-work in
early 2018. This includes testing several metallurgical processes available from proprietary technology companies. It also
includes opening a test laboratory in Calgary, where the Company is headquartered, to test extraction technology being developed
in-house and by the University of Alberta. E3 Metals set an ambitious goal to develop a mineral resource before the end of 2017,
and having accomplished this early has set new goals towards commercialization and will continue to advance the Alberta
Petro-Lithium Project as rapidly as it has over the past 6 months.
Since May 2017, E3 Metals has completed a number of significant milestones. E3 Metals developed collaborative
relationships with 11 key operators in the oil and gas industry. Through these relationships, the Company was able to sample over
70 wells. With this information, E3 Metals completed two inferred mineral resource NI 43-101 Technical Reports. This
included the Central Clearwater Mineral Resource Estimate (1.9 Million Tonnes Lithium Carbonate Equivalent, “LCE”) and Rocky
Mineral Resource Estimate (0.93 Million Tonnes LCE). This is a significant achievement made possible by the rich oil field
data available from over 60 years of oil and gas production over the Company’s project area. E3 Metals also increased its land
holding to over 580,000 ha of Metallic and Industrial Minerals (MIM) permits across Alberta to become the largest single holder
of MIM permits over the prolific Leduc Reservoir, the only known major source of Petro-Lithium brine in Alberta. E3 Metals has
also attracted a diverse and experienced management and advisory team. This includes the partnership with the Alessi Laboratory
at the University of Alberta and the appointment of three critical members to the advisory board. The Company’s management
team has been instrumental in moving the Company forward and will continue to drive towards achieving the Company’s goals in
2018.
Warrant Acceleration Notice
The Company hereby provides notice to all holders of warrants issued pursuant to the Company’s April of 2017
private placement (under the Company’s former name Savanah Gold Corp.)(the “Warrants”) of their accelerated expiry date
under the terms of the private placement subscription agreement and Warrant Certificate. Of the total 1,500,000 Warrants issued
under the private placement, approximately 620,000 have already been exercised. Accordingly, the Company is notifying the holders
of the remaining 880,000 Warrants that they have 30 days from the date hereof to exercise the Warrants, at an exercise price of
$0.40. Any Warrants not exercised within 30 days will expire. E3 Metals plans to use the additional funds to advance the
Company’s extraction test-work plans for 2018. Please refer to the Company’s news release of April 10, 2017 for more
information about the Warrants and their acceleration. Warrantholders who have questions about the Warrants or their acceleration
should contact the Company at admin@e3metalscorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
Chris Doornbos, President & CEO
E3 METALS CORP.
Chris Doornbos (P.Geo), CEO, President and Director of E3 Metals Corp., is a Qualified Person a as defined by NI
43-101 and has read and approved the technical information contained in this announcement.
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 potential of the Company’s
projects to produce saleable lithium byproducts, including LCE, 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 effectiveness and feasibility of emerging lithium extraction technologies which have not yet been tested or proven on a
commercial scale or on the Company’s brine, 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/E3Metals12062017.pdf
Source: E3 Metals Corp. (TSX Venture:ETMC)
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