Canadian Federal Government Invests $27M in Lithium Extraction

guyana-goldfields-2018-q4-earnings-guy

François-Philippe Champagne, Minister of Innovation, Science, and Industry along with George Chahal, Member of Parliament for Calgary Skyview, announced a $27 million contribution to E3 Lithium Ltd (CVE: ETL). through the Strategic Innovation Fund’s Net Zero Accelerator initiative.

As Alberta’s leading lithium developer and extraction technology innovator, E3 Lithium now joins companies such as Rio Tinto (ASX: RIO), Stellantis (NYSE: STLA) and General Motors (NYSE: GM) who have recently received funding under this program.

This investment supports E3 Lithium’s $87 million project for the construction of a demonstration plant specializing in lithium production. This facility is being built as a first step toward a full-scale lithium production plant that will produce 20,000 tonnes of battery-grade lithium. The Canadian government is aiding the mining sector to develop a sustainable, long-term source of lithium supply – critical to building electric vehicles and strengthen the supply chain.

This project will increase the efficiency of the production of high-quality lithium and increase the quantity and will create 166 jobs in Alberta. The government is also advancing a Canadian Critical Minerals Strategy by bringing value-added mineral processing capability to Canada.

Chris Doornbos, CEO of E3 Lithium Ltd., commented on the investment:

“The breadth of the development costs this funding covers contributes significantly to the de-risking of our end-to-end project development as we progress towards a commercial facility producing battery-grade lithium in Alberta. The Canadian government has committed to supporting the critical minerals supply chain. Growing local Canadian supply begins with the raw materials, and Alberta has a significant part to play in that future.”

All eligible costs under the program are reimbursed to E3 at 33.94% up to a total of $27M. E3 can immediately apply for all eligible expenses as of the initial application date in August 2021, which includes the costs associated with E3’s 2022 drilling program. E3 expects its first reimbursement from SIF to exceed $4M.

Since 2017, E3 has secured approximately $35M CAD to fund its development over the last five years, exclusive of the SIF investment. The SIF investment provides funding stability without share dilution as E3 works towards first lithium production in Alberta.  The SIF contribution is conditionally repayable if and when E3 earns gross revenue from commercial operations.

Repayable at a rate of 1% of annual revenue over a period of 20 years, repayments are limited to a maximum of 1.4 times the amount of SIF contribution disbursed.

Capital 10X gets down to the real money business, actionable financial insights for traders and investors. We analyze company earnings, interview management teams and help teach the fundamentals of financial analysis and options trading. Our mission is to hunt for genuine 10 baggers.

LEAVE A REPLY

Please enter your comment!
Please enter your name here