INTERNATIONAL BATTERY METALS LTD. ANNOUNCES THE SIGNING OF A TERM SHEET FOR OUR MODULAR DIRECT LITHIUM EXTRACTION PLANT WITH A CUSTOMER
VANCOUVER, BC, AND HOUSTON, Jan. 11, 2024 /PRNewswire/ - International Battery Metals Ltd. (the "Company") (CSE: IBAT), is pleased to announce the signing of a term sheet for deployment of our modular direct lithium extraction plant (the "MDLE Plant") with a customer (the "Customer") in the western United States. Our MDLE Plant utilizes our proprietary selective absorption media minimizing the use of chemicals, reducing by-product waste, and recovering over 98% of our process water. The Customer is a significant producer of metals and minerals including the production of battery grade lithium carbonate. Pursuant to the terms sheet, IBAT will immediately begin mobilizing the MDLE Plant to the Customer's site where it will be integrated into existing production facilities. The initial targeted production, following commissioning, is approximately 4,000 metric tons per annum of lithium carbonate with the goal of increasing this production to over 8,000 metric tons per annum by optimizing the MDLE Plant. The integrated system will represent the first commercial direct lithium extraction operation to go online in North America.
The term sheet provides for mobilization fees and cost sharing arrangements for the commissioning and optimization of the MDLE Plant. Once the MDLE Plant completes the initial commissioning, the term sheet also provides that IBAT will be entitled to monthly equipment rentals and royalties based on the volumes produced and the realized sales value of the lithium carbonate. Additionally, the Customer will have certain options to purchase the MDLE Plant while IBAT will retain all the technology rights, the royalties, and be the exclusive supplier of the absorption media to the Customer.
"Our MDLE Plant is the industry leading direct lithium extraction technology available today. We are very excited for this opportunity to reach full commercialization and look forward to future developments with our outstanding Customer," commented John Burba, Founder and Chief Technology Officer.
"We are very pleased with achieving this significant milestone for IBAT. The opportunity to integrate our MDLE Plant with a Customer who has existing production facilities is an outstanding outcome, accelerating the full commercialization of our technology and achieving meaningful product revenues" Garry Flowers, Co-Chief Executive Officer added.
Michel Libor, Co-Chief Executive Officer further commented, "Accomplishing first commercial revenue is a major milestone for any company. The business and operational benefits that we expect will flow to us from the transaction contemplated by this term sheet is a credit to the IBAT team and their perseverance. This is an exciting opportunity to launch our commercial operations and begin growing the Company."
The MDLE Plant uses IBAT's proprietary selective absorption lithium media to extract lithium from brine fluids. The MDLE Plant was originally constructed in Lake Charles, Louisiana where it was extensively tested and received independent third-party validation of its operational performance. The modular design of the MDLE Plant will allow it to be mobilized to the Customer's facilities. Once the MDLE Plant is operational, the MDLE Plant will be optimized to increase its production capacity. This optimization will consist of adding additional extraction modules, containing IBAT's proprietary selective absorption lithium media, and increasing certain valves and pumps to accommodate additional flow of brines.
About International Battery Metals Ltd.
The Company's direct lithium extraction technology is based on proprietary lithium extraction housed in patented extraction towers that are enclosed in a modular, shippable platform able to be loaded and brought into production within 10 days of arrival on a customer site. Utilizing the patented technology, the Company's focus has been on advanced extraction of lithium chloride from ground water salt brine deposits and returning the same water to the subsurface aquifer from which it is extracted. The Company's unique patented technology ensures faster delivery of lithium chloride while ensuring minimal environmental impact.
Garry Flowers, Co-CEO
Libor Michel, Co-CEO
Securities Law Disclaimers
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.
Forward‐looking Statements
This release may contain statements within the meaning of safe harbour provisions as defined under securities laws and regulations.
This news release contains assumptions, estimates, and other forward-looking statements regarding future events.
These forward-looking statements related certain of the plans and objectives of the Company, including the transaction, operations and business contemplated by the term sheet summarized above. In particular, the Company cannot assure you that the parties will enter into the definitive documents for the term sheet or that the business and operations contemplated by the term sheet will be profitable for the Company or will realize the benefits the Company anticipates. The use of any of the words "will", "expected", "view", "believes" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual results and developments may differ materially from those contemplated by forward-looking information as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. Additional information regarding risks and uncertainties of the Company's business are contained in the Company's public filings which are available under the Company's profile on SEDAR+ at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information. The statement made in this press release is made as of the date hereof. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
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SOURCE International Battery Metals Ltd.
