International Battery Metals Closes Second $2.0 Million Follow-On Investment from EV Metals Under Existing LOI
International Battery Metals Ltd. (“IBAT”)an advanced technology provider specializing in modular direct lithium extraction (“DLE”) systems, is pleased to announce the closing of its previously disclosed non-brokered private placement financing. This marks the second follow-on investment completed under the Company’s existing binding Letter of Intent (“LOI”) with EV Metals 7 LLC, originally signed in March 2025.
Under the terms of the financing, IBAT issued a total of 12,464,000 units (“Units”) to EV Metals at a price of USD $0.16 per Unit, representing gross proceeds of USD $2.0 million (approximately C$2,804,400 based on the Bank of Canada exchange rate of US$1.00 = C$1.402 as of October 21, 2025). Each Unit consists of one common share of IBAT and one common share purchase warrant (“Warrant”). Each Warrant entitles the holder to acquire one additional IBAT common share at an exercise price of C$0.30 per share for a period of four years from the date of issuance.
The net proceeds from this financing will be allocated to general corporate purposes and to further the commercial deployment of IBAT’s next-generation modular DLE technology, which is designed for rapid and efficient lithium recovery with minimal environmental impact.
In accordance with the LOI, IBAT paid a 5% structuring fee in cash to Jacob Warnock, reflecting the total gross proceeds subscribed for by EV Metals and its affiliates.
The securities issued under this private placement are subject t a statutory hold period under applicable Canadian securities laws and cannot be traded until March 1, 2026. These securities are also restricted under the U.S. Securities Act of 1933, and may not be offered or sold in the United States unless pursuant to registration or an applicable exemption.
This news release does not constitute an offer or solicitation to buy or sell securities in any jurisdiction where such transactions would be unlawful.
MI 61-101 Disclosure
The participation of EV Metals and its affiliates in the Offering and the associated structuring fee are considered “related party transactions” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).
IBAT has relied on exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101. Specifically:
- The formal valuation exemption is available under Section 5.5(a) of MI 61-101.
- The minority shareholder approval exemption applies under Section 5.7(1)(a), as the fair market value of the Offering and related fee do not exceed 25% of the Company’s market capitalization.
A material change report relating to these related party transactions will be filed less than 21 days before closing. This shortened filing period is reasonable and necessary because the terms of the transactions were finalized less than 21 days prior to the closing date.
The related party transactions were unanimously approved by the non-interested directors of the Company.
Early Warning Disclosure
Prior to the completion of this Offering, EV Metals and affiliated entities under the common control of Jacob Warnock beneficially owned or controlled:
- 70,435,051 IBAT common shares (including restricted share units held by Mr. Warnock)
- 47,535,130 IBAT common share purchase warrants
- 2,000,000 additional warrants to acquire IBAT shares from arm’s length third parties
This represented approximately 34.83% of the issued and outstanding IBAT common shares on a partially diluted basis (assuming exercise of only those warrants held by EV Metals and related entities).
Following completion of the Offering, EV Metals and its affiliated entities now beneficially own or control:
- 82,899,051 IBAT common shares (including restricted share units held by Mr. Warnock)
- 59,999,130 IBAT common share purchase warrants
- 2,000,000 third-party warrants, collectively representing approximately 38.97% of the issued and outstanding IBAT common shares on a partially diluted basis (again, assuming exercise of only those warrants held by EV Metals and affiliates).
EV Metals has acquired these Units for investment purposes and may, in the future, increase or decrease its holdings of IBAT securities in accordance with market conditions, investment strategies, or other considerations.
EV Metals is located at 1 Calle Cervantes #5, San Juan, Puerto Rico 00907. For additional information,
About International Battery Metals Ltd.
International Battery Metals Ltd. (IBAT) is a clean technology company specializing in direct lithium extraction (DLE) through modular and transportable systems designed for scalability and environmental sustainability.
IBAT’s proprietary DLE technology is based on patented extraction columns that use specialized lithium extraction media to efficiently separate lithium chloride from brine and produced water sources. These columns are enclosed within modular, skid-mounted units that can be deployed and commissioned in a fraction of the time required by conventional lithium projects.
This modular design enables faster project development, flexible site deployment, and a reduced environmental footprint, positioning IBAT as a key innovator in the rapidly growing global lithium supply chain.
