International Battery Metals Limited Unveils Non-Brokered Private Funding Arrangement
On July 21, 2025, International Battery Metals Ltd (IBAT) announced a non-brokered private placement financing. The financing will raise US$5 million through the issuance of 25,765,259 units at US$0.19406 per unit.
The proceeds from the Offering will be used for preparing IBAT's modular direct lithium extraction plant (MDLE Plant) for future operations and general corporate purposes.
Each unit consists of one common share and one common share purchase warrant. The Warrants issued will have a three-year expiration date and entitle the holder to acquire one Common Share at an exercise price equal to the Market Price per Warrant Share.
The extension of the warrants is subject to the approval of the TSX Venture Exchange (TSXV). Concurrently with the Offering, the Company will extend the expiration date of the warrants issued to Encompass Capital Advisors LLC and EV Metals.
The fair market value of the Offering and the Warrant Amendments, insofar as it involves related parties, is not more than 25% of the Company's market capitalization. The participation by Encompass in the Offering and the extension of warrants constitute "related party transactions" under MI 61-101.
The Company has entered into subscription agreements for the private placement financing and has also entered into amended and restated registration rights agreements with Encompass and EV Metals. The amended agreements are named as RRA Amendments and were dated May 3, 2024.
It is worth noting that the Offering and the Warrant Amendments have not been registered under the Securities Act of 1933 or applicable state securities laws. Encompass Capital Advisors LLC has the right to purchase up to US$2 million of additional Units by December 31, 2025.
The securities issued under the Offering are subject to a statutory hold period of four months and one day from the date of issuance under Canadian Securities laws. The related party transactions were unanimously approved by the non-interested directors of the Company.
This financing represents a significant capital raise for International Battery Metals to advance its lithium extraction technology and support overall corporate growth. The financing will help IBAT in preparing its MDLE Plant for future operations, a crucial step in the company's plans to become a major player in the lithium industry.
| Detail | Information | |--------------------------------|------------------------------------------| | Announcement date | July 21, 2025 | | Financing type | Non-brokered private placement | | Total units issued | 25,765,259 units | | Price per unit | US$0.19406 | | Total gross proceeds raised | US$5 million | | Contents per unit | 1 common share + 1 warrant | | Warrant exercise price | C$0.355 per share | | Warrant expiry date | August 5, 2028 | | Use of proceeds | Preparing MDLE Plant, general corporate | | TSXV approval | Warrant amendments to extend expiry date |
- International Battery Metals Ltd (IBAT) has announced a significant capital raise through a non-brokered private placement financing, aiming to raise US$5 million on July 21, 2025.
- The proceeds from this financing will be used for preparing IBAT's modular direct lithium extraction plant (MDLE Plant) for future operations and general corporate purposes.
- This financing will support IBAT's growth in the lithium industry, with the funds helping in preparing the MDLE Plant, a crucial step in the company's plans to become a major player.
