International Battery Metals closes US$5 million private placement

International Battery Metals Ltd. (TSXV: IBAT) (OTCQB: IBATF) completed a private placement financing with Encompass Capital Advisors LLC for aggregate gross proceeds of approximately US$5 million.

The company issued 25,765,259 units at a deemed issue price of approximately US$0.19406 per unit. Each unit consists of one common share and one warrant. The warrants allow holders to acquire common shares at C$0.355 per share until August 5, 2028.

International Battery Metals stated the proceeds will be used for preparing its modular direct lithium extraction plant for future operations and general corporate purposes.

The securities are subject to a four-month and one-day hold period under Canadian securities laws. The offering was conducted as a private placement under Regulation D of the Securities Act of 1933.

The company also received TSX Venture Exchange approval for amendments to warrants from previous private placements. The amendments extend expiration dates of existing warrants to August 5, 2028, and add restrictions limiting Encompass from becoming a control person through warrant exercises.

The warrant amendments affect approximately 39.2 million warrants issued in four separate private placements between April 2023 and June 2024, with exercise prices ranging from C$0.9579 to C$1.25 per share.

International Battery Metals develops direct lithium extraction technology using proprietary extraction media in modular platforms designed for lithium chloride extraction from groundwater salt brine deposits.

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