International Battery Metals (IBAT) has closed non-brokered private placement financing, securing aggregate proceeds of $10.43m (C$14.27m).

This capital raise is a significant step for the company as it aims to advance its modular direct lithium extraction plant in the western US.

The private placement involved the issuance of 18,642,134 units at C$0.76632 each.

Each unit comprises one common share of the company and one warrant, with each warrant allowing the holder to acquire a common share at an exercise price of C$0.9579 over the next two years.

In association with this financing, IBAT has extended the expiry date of nearly 6.4 million previously issued warrants from 21 April 2025 to 3 May 2026.

Furthermore, the company agreed to pay a structuring fee of $321,800 to EV Metals VI, a private entity controlled by IBAT director Jacob Warnock, which will be settled through the issuance of 574,840 common shares.

The funds from this placement are earmarked for the deployment of the company's lithium extraction plant and for general working capital requirements.

The company also plans to undertake up to $13.56m of additional private placement financings.

IBAT also entered an agreement with US Magnesium for the installation of its patented modular direct lithium extraction plant.

This mobile facility will be situated at US Magnesium's operations near Salt Lake City, Utah, and will process brine from lithium-rich waste-magnesium salts to produce lithium chloride, which will then be used by US Magnesium to create high-purity lithium carbonate.

Under the agreement, IBAT will get royalties on lithium sales from US Magnesium, along with payments for equipment operations depending on lithium prices and performance.

Initially, the plant is expected to have an annual production capacity of up to 5,000 tonnes.