E3 to receive up to $4.7 million from critical minerals fund
E3 Lithium Ltd. [ETL-TSXV, EEMMF-OTC, OU7A-FSE] said it has been conditionally approved for contribution funding of up to $4.7 million in non-repayable investment from the Critical Minerals Infrastructure Fund (CMIF). This strategic funding will support the advancement of the company’s Clearwater lithium project in Alberta, enhancing its ability to develop critical infrastructure and optimize operations.
E3 is a company that sees opportunity in Alberta’s depleted oil and gas reserves. E3 has developed Direct Lithium Extraction (DLE) technology that aims to extract lithium from brine in old oil wells. The company’s goal is to commercialize its global-scale lithium resource and deliver zero carbon emissions, battery grade, lithium products to the growing electric vehicle supply chain.
CMIF’s goal it to provide up to $1.5 million in federal funding until 2030 for clean energy and transportation infrastructure projects necessary to enable the sustainable development and expansion of critical minerals in Canada. The investment will be used to undertake preconstruction work on transportation and energy infrastructure necessary to develop the Clearwater project. This will include studies to assess transportation upgrades to support industrial traffic, as well as exploring options to optimize energy to produce lithium from brine and source process water from internal recycle streams and raw brine.
“The investment from CMIF supports the planning and development of some of our critical infrastructure for our Clearwater project, focusing around the central processing facility,’’ said E3 Lithium President and CEO Chris Doornbus.
All eligible costs under the program are reimbursed to E3 at 50% up to a total of $4.7 million. The final CMIF investment is pending the execution of the contribution agreement, which is targeted to be completed within a few months. E3 can apply for all eligible expenses incurred as of October 2024, which may include some work on the demonstration facility project as outlined in its 2025 project update released on February 25, 2025.
The CMIF investment provides further funding stability without additional share dilution as E3 continues to advance the Clearwater project toward first lithium production in Alberta.
News that E3 has been conditionally approved for contribution funding comes several months after the company said a pre-feasibility (PFS) study for the Clearwater Project has outlined for the first time the viability of producing lithium from brines in Alberta.
The PFS envisages initial production of 32,250 tonnes per year of Lithium Hydroxide Monohydrate (LHM) as well as an operating life of 50 years that covers only a portion of the Bashaw District in which the project is located.
The PFS is based on 1.29 million tonnes of LHM proven and probable lithium mineral reserves (1.14 million tonnes of Lithium Carbonate Equivalent LCE) from the total Bashaw District of 18.4 million tonnes of LHM measured and indicated resources of 16.2 million tonnes LCE located in the Leduc Reservoir.
On Tuesday, E3 Lithium shares eased 1.2% or $0.01 to 82 cents. The shares trade in a 52-week range of $2.05 and 75 cents.