M4E Lithium Secures $7.5M to $10M Funding to Speed up Brazilian Lithium Exploration

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• M4E Lithium secured a $7.5M to $10M funding from trade main Lithium Royalty Corp. (“LRC”) and the Electrification and Decarbonization fund managed by Waratah Capital Advisors (founding father of LRC)
• The financing bundle contains an fairness funding, a royalty buy and an possibility for a strategic offtake settlement (with a buyback possibility)
• M4E will deploy the capital to aggressively advance exploration actions throughout its expansive 91k hectares inside prolific lithium districts in Brazil

SAO PAULO — M4E Lithium (“M4E”), a lithium exploration firm centered on Brazilian, closed a financing bundle with Lithium Royalty Corp. and the Electrification and Decarbonization fund (“Waratah E&D Fund”) managed by Waratah Capital Advisors.

LRC was based by Waratah and is the main lithium-focused royalty firm globally, boasting a diversified portfolio of initiatives positioned to learn from the surging demand for battery metals. The Waratah E&D Fund is a key investor in rising lithium initiatives globally.

This funding validates M4E’s sturdy potential and considerably advances exploration throughout M4E’s expansive 91k hectares of mining rights within the prolific Lithium Valley and Borborema areas of Brazil.

The financing bundle consists of:

• Fairness Funding: $6 million fairness funding, from Waratah E&D Fund, in M4E at a post-money valuation of $31 million.
• Royalty Settlement: $1.5 million fee for a 1.5% royalty on future manufacturing, from LRC. A further $2 million fee will probably be triggered upon affirmation of a minimal tonnage of lithium assets by M4E.
• Offtake Settlement: an choice to an offtake settlement exercisable for $500,000, enabling the Waratah E&D Fund the correct to buy 10% of M4E’s future lithium manufacturing at market costs. This settlement contains an possibility for M4E to purchase again its offtake place.

“This partnership with LRC and the Waratah E&D Fund is a game-changer for M4E,” mentioned Sergio Castanho, CEO of M4E. “We’ve got the belongings, the group, and now the capital to aggressively discover and develop our lithium assets. LRC and Waratah’s funding and experience will probably be instrumental in accelerating our progress and creating vital worth for all stakeholders.”

The authorized advisory for M4E in was led by Carlos Zanini and George Hauschild, from MBZ Advogados. The group additionally benefited from the advisory of Filipe Cunha (Bichara Advogados), and Shawn Doyle (McCarthy Tétrault). Stikeman Elliott LLP and Mattos Filho Advogados offered counsel for LRC and Waratah.

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