#Canada #Vancouver #financing #International Battery Metals #lithium extraction

International Battery Metals Ltd. Launches Non-Brokered Private Placement Financing

In an exciting development for investors and stakeholders, International Battery Metals Ltd. (IBAT) has announced a significant fundraising initiative through a non-brokered private placement. This strategic move enables the company to issue $5 million in units, which consist of common shares and warrants, aimed toward advancing its proprietary lithium extraction technology and preparing future operations for its modular direct lithium extraction plant (MDLE Plant).

The company confirmed that it has entered into subscription agreements with Encompass Capital Advisors LLC, which is acting on behalf of several fund entities and managed accounts with investment discretion. Under this arrangement, IBAT plans to close the offering by August 8, 2025. The unit price will be aligned with the maximum permissible discount to the market price of its common shares, reflecting a well-considered approach to present market conditions.

The financing will not only sustain IBAT's operational plans but will also allow for further investments into the development of their lithium extraction technology, renowned for its efficiency and minimal environmental footprint. Each unit issued will include a common share and a warrant, entitling holders to acquire additional common shares at an exercise price set at the market price.

Following the issuance, the company expects to provide a total of 25,765,258 units at an approximate deemed issue price of $0.19406 per unit, generating aggregate gross proceeds of around $5,000,000. This issuance is based on the exchange rate established on July 18, 2025, indicating how external financial dynamics can directly influence the structuring of such offerings.

In addition to the immediate financing, Encompass has been granted the right to purchase an additional $2 million worth of units, showcasing a burgeoning partnership and indicating confidence in IBAT’s future prospects. This additional investment can be executed at any time prior to the end of 2025, allowing for flexibility in capital raising as market conditions evolve.

It’s crucial to note that the securities from this offering are subject to a statutory hold period of four months and a day, ultimately designed to protect both the company and its investors while navigating regulatory frameworks.

IBAT’s ongoing commitment to environmentally sustainable practices in lithium extraction is one of its key differentiators. The company utilizes patented technologies that facilitate the extraction of lithium chloride from salt brine sources, with a promise to return the water used back to the aquifer, thereby minimizing environmental impact and ensuring resources are responsibly managed. This commitment not only positions IBAT as a leader in the lithium market but also resonates with increasing global demands for sustainable energy resources.

As IBAT advances towards operational readiness at the MDLE Plant, these fundraising efforts reflect a promising path forward, one that prioritizes innovation, sustainability, and strategic growth amid the rapidly evolving landscape of the lithium extraction industry. Investors and market analysts alike will be watching closely as IBAT navigates this next chapter.

In conclusion, the announcement of this non-brokered private placement financing marks a pivotal moment for International Battery Metals Ltd., aligning with broader trends in the renewable energy sector and reinforcing the company’s position at the forefront of lithium extraction technology. With plans to close the offering soon and a clear vision for leveraging these funds, IBAT is poised for significant future developments.