INTERNATIONAL BATTERY METALS LTD. ANNOUNCES CLOSING OF ITS PREVIOUSLY ANNOUCED NON-BROKERED PRIVATE PLACEMENT FINANCING
Introduction
International Battery Metals Ltd. (IBAT), a Canadian leader in sustainable lithium extraction, has successfully completed a private placement financing to bolster its operational capabilities. As the demand for lithium grows in accordance with the surge in electric vehicle production and renewable energy storage solutions, IBAT is positioning itself to leverage this burgeoning market. The recent financing, in collaboration with Encompass Capital Advisors, will provide essential funds for the preparation of its innovative Modular Direct Lithium Extraction Plant (MDLE Plant) and further corporate developments.
Financing Overview
Private Placement Details
On August 6, 2025, IBAT announced the completion of a private placement where it issued 25,765,259 units at an approximate price of USD 0.19406, raising around USD 5 million (approximately CAD 6.86 million). Each unit consists of one common share and one purchase warrant, giving holders the opportunity to acquire additional shares at an exercise price of CAD 0.355 until August 5, 2028.
Use of Proceeds
The funds generated from this offering are earmarked for advancing the MDLE Plant, which employs proprietary technology aimed at efficient lithium extraction. The company is focused on minimizing environmental impacts while providing rapid delivery of lithium chloride from underground sources.
Securities Regulations and Hold Period
The issued securities are subject to a four-month hold period in accordance with Canadian securities laws, emphasizing the private nature of the offering. They are not registered under the Securities Act of 1933 and cannot be resold in the United States without proper exemptions.
Warrant Amendments and Related Transactions
In conjunction with the financing, the company received approval for amendments to warrants from previous offerings involving Encompass and EV Metals. These amendments include extending the expiration dates of certain warrants while ensuring that Encompass does not acquire control as defined under Ontario securities regulations.
Corporate Governance and Related Transactions
The transactions involving Encompass and EV Metals are classed as related-party transactions. However, exemptions from the formal valuation requirements under Multilateral Instrument 61-101 have been invoked, as the deals do not exceed 25% of the company’s market capitalization. This reflects a careful approach to governance while navigating funding strategies.
About International Battery Metals Ltd.
IBAT is at the forefront of lithium extraction technology, utilizing patented methods that allow for quick and environmentally-friendly processing. Its modular and shippable extraction platform positions it as a nimble player ready to respond to the needs of lithium consumers, particularly in the thriving electric vehicle sector.
Conclusion
International Battery Metals Ltd. is taking strategic steps to secure its future in the competitive lithium market. Through successful financing and innovative technology, the company is positioning itself not only to meet rising demand but to do so sustainably and efficiently. With solid operational foundations and a clear direction, IBAT is aligning itself with the global shift towards greener energy solutions, ensuring that it remains a significant contributor to the lithium industry’s growth.