E3 Metals (TSXV: ETMC) has increased the size of its previously announced private placement offering due to additional interest from institutional investors.
Under the amended bought deal agreement, the underwriters will now purchase approximately 5.9 million units of the company at a price of C$1.185 per unit, for gross proceeds of C$7 million. The previous financing amount was C$5.21 million.
“We are very encouraged to see the level of interest in E3 as we grow an institutional following,” Chris Doornbos, E3 Metals’ CEO said in a media release.
“While there is remaining additional interest, the company is raising only that which we required to completed our development plans in 2021 and into 2022,” Doornbos said.
Proceeds of the offering will be used to accelerate the development of E3 Metals’ Clearwater lithium project, which is estimated to contain 7 million tonnes of lithium carbonate equivalent (LCE) in inferred mineral resources.
Through the successful scale up its DLE technology towards commercialization, E3 Metals’ goal is to produce high-purity, battery-grade lithium products from brines in Alberta, Canada.
Shares of E3 Metals rose 4.3% as of 12:30 p.m. EST Friday, near an all-time high. The stock has nearly doubled since the beginning of 2021.
The lithium development company has a market capitalization of C$68.34 million.