E3 Lithium says Clearwater engineering advances toward completion in 2027
Federal support of up to C$36.5M backs demonstration work while a pending licence could permit up to about 30,000 tonnes of lithium carbonate a year.
Ines Halvorsen
In 2027, E3 Lithium Ltd. CVEETL OTCMKTSEEMMF expects Clearwater engineering to advance toward completion; a pending plant licence could allow up to about 30,000 tonnes of lithium carbonate a year, it said Sept. 29. Up to C$36.5 million in non-repayable federal funding supports the final demonstration phase and front-end engineering, the Alberta company said. E3 said in its Aug. 20 results that it executed its contribution agreement with Natural Resources Canada on June 8. The results put the federal share at 75 per cent of an approximately C$48 million demonstration and feasibility program.
E3 shares CVEETL closed at C$0.76 on the TSX Venture Exchange at 4 p.m. EDT on Sept. 28, before this update. Toronto trading had yet to open when the release was issued Tuesday.
Phase 2 of the demonstration facility is nearing completion, E3 said Sept. 29, though gas composition testing remains to be finalized for the commercial design. The next phase shifts operations to lithium carbonate production, and E3 is working toward a commercial-scale direct lithium extraction column. The company expects the column to run through 2027, possibly longer, to provide operating data for financing and strategic partner talks.
Front-end engineering will continue as data gathered this autumn are compiled, and E3 said the work will advance toward completion in 2027. E3's Aug. 20 report listed the feasibility study among its 2026 priorities without giving a finish date; Tuesday's update places further engineering progress in 2027. E3 did not set a date for a final investment decision or first commercial production in the update.
"With federal funding supporting Phase 3 of the Demonstration Facility and FEED, we are de-risking the Clearwater Project as we advance towards our goal of first production," chief executive Chris Doornbos said in the release.
Pending Plant Licence Could Allow Up to About 30,000 Tonnes a Year
E3 has submitted the central processing facility licence application and is engaging the Alberta Energy Regulator, the company said. Approval would enable capacity of up to about 30,000 tonnes of lithium carbonate a year. E3's Aug. 20 results targeted 12,000 tonnes of annual Stage 1 production, below the capacity sought in the licence application. The regulator's decision date was not given in Tuesday's release.
Commercial terms remain preliminary. E3 described memoranda for prospective lithium carbonate supply and hydroxide refining as nonbinding, without announcing a firm purchase volume or per-tonne price in the update. The company said data from the larger extraction column would support financing and strategic partner negotiations.
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On Sept. 24, E3 closed a C$11.5 million gross share sale, issuing 12,782,250 units. Each unit included a share and a warrant exercisable at C$1.10 until Sept. 24, 2029. E3 said it intends to use the net proceeds for Clearwater and general working capital, as set out in its prospectus supplement; the Sept. 24 release itself gave no engineering allocation.
The next dated checkpoint is E3's Sept. 29 investor webinar at 2 p.m. EDT, when management is scheduled to discuss project progress and answer questions. E3 said a recording would be available afterward on its website.
