September 3, 2020- International Battery Metals Ltd. (the “Company”) (CSE: “IBAT”) announces that subject to regulatory approval, its board of directors have approved a private placement with Sorcia Minerals LLC (“Sorcia”) of 25,000,000 common shares at a price of $0.10 for proceeds of $2,500,000. Sorcia is a subsidiary of Ensorcia Metals Corporation (“Ensorcia”) which holds 3,333,333 common shares and 3,333,333 share purchase warrants (the “Warrants”) entitling it to purchase an additional 3,333,333 common shares of the Company.
Prior to completion of the private placement there were 63,971,166 common shares issued and outstanding. Assuming exercise of the Warrants, Ensorcia would hold 6,666,666 common shares which is 10.42 % of the number of shares presently outstanding. On completion of the private placement, Ensorcia will, assuming the exercise of the Warrants, directly or indirectly control 31,666,666 common shares which is 35.59% of the 88,971,166 common shares that will be outstanding after completion of the private placement.
Neither the Company nor, to the knowledge of the Company after reasonable inquiry, Sorcia has any knowledge of any material information concerning the Company or its securities that has not been generally disclosed. The transaction is exempt from the minority approval requirement of multilateral instrument 61-101 as the fair market value of the transaction does not exceed $2,500,000, two-thirds of the directors of the Company, who are independent in respect of the transaction and are not employees of the Company have approved the transaction and the Company does not trade on certain designated exchanges. The proceeds will be used to continue fabrication of the Company’s first lithium extraction unit and for general corporate purposes.
