Imperial Oil Ltd. has signed a deal with E3 Lithium for a lithium project in Alberta and agreed to invest $6.35 million in the company.
The agreement helps advance E3 Lithium's Clearwater project, which will draw lithium from under the Leduc oilfield.
It includes drilling lithium evaluation wells and the scaling up of E3 Lithium's technology, which brings the brine liquid to the surface where the lithium is removed and concentrated.
Under the agreement, E3 Lithium will continue to operate the Clearwater project with technical and development support from Imperial.
Imperial has also agreed to acquire 3,413,979 E3 warrants at a prepaid price of $1.86 per warrant.
Each warrant provides the holder the option to exercise the warrant for one common share of E3. They are immediately exercisable, non-transferable, expire in 24 months and are non-refundable.
© 2022 The Canadian Press