International Battery Metals Ltd. (TSXV: IBAT, OTCQB: IBATF) has announced a non-brokered private placement financing, securing an additional $2.8 million as part of its ongoing funding arrangement with EV Metals VII LLC. The investment represents the fourth follow-on tranche under a previously announced binding Letter of Intent (LOI), bringing total funding under the agreement to $15 million.
The LOI, initially signed on February 28, 2025, outlines a multi-phase investment commitment by EV Metals, an insider entity controlled by IBAT director Jacob Warnock. Under the latest tranche, an affiliate of EV Metals has agreed to subscribe for 34,315,465 units of the company at a price of $0.08 per unit, generating gross proceeds of $2.8 million. Based on prevailing exchange rates, the offering corresponds to approximately C$3.8 million.
Each unit consists of one common share and one warrant to purchase an additional share. The warrants are exercisable at C$0.148 per share over a four-year period from the date of issuance. The offering is expected to close on or around April 24, 2026, subject to approval by the TSX Venture Exchange.
The proceeds from the financing will be used for general corporate purposes as the company advances the deployment of its modular direct lithium extraction (DLE) technology. IBAT’s DLE systems are designed to enable more efficient and scalable lithium recovery, a critical component in the global battery supply chain, particularly as demand for electric vehicles and energy storage continues to rise.
As part of the agreement, IBAT will pay a structuring fee equivalent to 5% of the gross proceeds to Jacob Warnock. The securities issued under the offering will be subject to a statutory hold period of four months and one day under Canadian securities laws and will also be classified as restricted securities under U.S. regulations.
The transaction is categorized as a related-party transaction under Multilateral Instrument 61-101, which governs the protection of minority shareholders in special transactions. IBAT stated that it is relying on exemptions from formal valuation and minority shareholder approval requirements, as the value of the transaction falls below 25% of the company’s market capitalization. The deal has been unanimously approved by the company’s non-interested directors.
Following completion of the offering, EV Metals and affiliated entities under Jacob Warnock’s control are expected to significantly increase their ownership stake. Their combined holdings will rise to approximately 57.01% of the company’s issued and outstanding shares on a partially diluted basis, up from 45.58% prior to the transaction.
