International Battery Metals (CSE:IBAT) spikes 26pc on $2.5M placement

• International Battery Metals (IBAT) has announced a private placement with Sorcia Minerals, a subsidiary of Ensorcia Metals
• The placement, consisting of 25 million common shares at 10 cents each, could raise proceeds of up to C$2.5 million 
• Ensorcia currently holds 3,333,333 common shares and 3,333,333 share purchase warrants, and is entitled to buy another 3,333,333 IBAT shares
• The proceeds will go towards funding the company’s first lithium extraction unit, as well as general corporate purposes
• International Battery Metals (IBAT) is up 26.67 per cent and is currently trading at 9.5 cents per share

International Battery Metals (IBAT) has announced a private placement with Sorcia Minerals, a subsidiary of Ensorcia Metals.

While the private placement is still subject to regulatory approval, International Battery Metals’ board of directors has already approved it.

The placement consists of 25 million common shares, at a purchase price of 10 cents each. If fully taken advantage of, the placement could raise proceeds of up to C$2.5 million. 

Prior to the private placement, International Battery Metals had 63,971,166 common shares issued and outstanding.

Sorcia Minerals’ parent company, Ensorcia Metals, currently holds 3,333,333 common shares and 3,333,333 share purchase warrants in IBAT. As such, the company is entitled to buy an additional 3,333,333 common shares in International Battery Metals. 

If Ensorcia exercises all of its warrants, the company will hold 6,666,666 common shares in IBAT. This number will represent 10.42 per cent of shares of presently outstanding shares in International Battery Metals. 

Assuming all warrants are exercised, Ensorcia will directly or indirectly control 31,666,666 common shares in IBAT in total. This would represent 35.59 per cent of the 88,971,166 common IBAT shares that will be outstanding after the private placement is complete.

The proceeds of the private placement will mainly go towards funding the ongoing fabrication of International Battery Metals’ first lithium extraction unit. Some remaining funds from the private placement may also be used for the company’s general corporate purposes.

International Battery Metals (IBAT) is up 26.67 per cent and is trading at 9.5 cents per share at 2:17pm EDT.