E3 Lithium and Imperial Oil Sign Transformative Deal to Advance Lithium in Canada

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E3 Lithium (TSXV:ETMC) is an Alberta-based lithium technology and resource company focused on powering the growing electric revolution. The company has one of the largest lithium resources amongst its lithium peers with 7 million tonnes (Mt) of Inferred lithium carbonate equivalent (LCE) hosted in the world-class Leduc Reservoir, which is being developed on the backbone of the mature and sophisticated oil and gas industry.

E3 Lithium (TSXV:ETMC) has continued to make headway with its proprietary tech and substantial lithium resource. On June 23, the company announced a monumental strategic agreement with Imperial Oil, one of the largest global oil companies. Imperial has agreed to invest US$5 million in E3 Lithium. Imperial’s investment will support E3 Lithium’s advancement of its lithium-extraction pilot in Alberta, exploring the redevelopment of an historic oil field into a potential new leading source of lithium for Canada’s growing critical minerals industry.

The pilot will support E3 Lithium’s (TSXV:ETMC) Clearwater project, which will draw lithium from under the Leduc oil field, Imperial’s historic discovery that first launched major oil and gas development in Western Canada. E3 Lithium’s (TSXV:ETMC) proprietary technology is designed to extract the critical mineral from the lithium-rich brine, with potential for commercial development of battery-grade products.

“E3 Lithium and Imperial share an interest in the diversification of the Alberta economy, local job creation and sustainability,” said Chris Doornbos, CEO of E3 Lithium. “Leduc No.1, Imperial’s first well into this reservoir, was one of Imperial’s most prolific oil discoveries in Alberta and transformed the provincial and Canadian economies, much like lithium has the potential to do. Having Imperial now working with E3 Lithium in exploring the redevelopment of Leduc into a world-class source of lithium is an exciting new chapter in Alberta and Canada’s story.”

The pilot project includes drilling Alberta’s first lithium evaluation wells, which are expected to be complete by the end of Q3 2022. The work will also focus on scaling up E3 Lithium’s (TSXV:ETMC) proprietary Direct Lithium Extraction (DLE) technology, which brings the brine to the surface where the lithium is removed and concentrated. The lithium-void brine is returned underground as part of a closed-loop system. According to E3 Lithium’s (TSXV:ETMC) Preliminary Economic Assessment (PEA), the first phase of development could produce about 20,000 tonnes of lithium hydroxide per year.

Under the agreement, E3 Lithium (TSXV:ETMC) will continue to operate the Clearwater project and retain its IP, while Imperial will provide technical and development support. The agreement will also offer E3 Lithium (TSXV:ETMC) access to freehold lands in the area that Imperial operates, helping further establish the company’s already dominant land position in the area. It also completes a strategic, large and contiguous land block, creating long-term certainty on a development framework for the project.

E3 Lithium Granted Licence for Alberta’s First Brine Production Well

Earlier this month, E3 Lithium (TSXV:ETMC) announced that it has received its licence for the first brine production wells in Alberta with the goal of evaluating lithium. The company expects that drilling will start before the end of June and anticipates to complete the drilling operation by mid-July.

The brine production well will provide critical data such as brine chemistry, lithium concentrations, and reservoir characteristics of the Clearwater Project area. E3 Lithium (TSXV:ETMC) will use the collected data to support the upgrade of its resource to Indicated and Measured, which will serve as the basis for a pre-feasibility study (PFS). The objective of the planned drill program is to offer additional data to the Aquifer Management Plan and help define the commercial production network area. The company plans to complete and test a total of three wells.

“We are very excited about this licence as it marks the first ever well drilled in Alberta specifically targeting lithium evaluation,” said E3 Lithium (TSXV:ETMC) CEO Chris Doornbos. “For our company, this represents the next step in our path to commercialization and producing high quality, EV-ready lithium. This licence is a direct result of the Alberta government’s passing of Bill 82 and we are proud to be leading this emerging industry that supports the diversification of Alberta’s economy and the energy transition.”

SOURCE: E3 Lithium (TSXV:ETMC)