M4E Lithium Secures $7.5M to $10M Funding to Accelerate Brazilian Lithium Exploration

M4E Lithium ("M4E"), a lithium exploration company focused on Brazilian, closed a financing package with Lithium Royalty Corp. and the Electrification and Decarbonization fund ("Waratah E&D Fund") managed by Waratah Capital Advisors.

LRC was founded by Waratah and is the leading lithium-focused royalty company globally, boasting a diversified portfolio of projects positioned to benefit from the surging demand for battery metals. The Waratah E&D Fund is a key investor in emerging lithium projects globally.

This investment validates M4E's strong potential and significantly advances exploration across M4E's expansive 91k hectares of mining rights in the prolific Lithium Valley and Borborema regions of Brazil.

The financing package consists of:

• Equity Investment: $6 million equity investment, from Waratah E&D Fund, in M4E at a post-money valuation of $31 million.
• Royalty Agreement: $1.5 million payment for a 1.5% royalty on future production, from LRC. An additional $2 million payment will be triggered upon confirmation of a minimum tonnage of lithium resources by M4E.
• Offtake Agreement: an option to an offtake agreement exercisable for $500,000, enabling the Waratah E&D Fund the right to purchase 10% of M4E's future lithium production at market prices. This agreement includes an option for M4E to buy back its offtake position.

"This partnership with LRC and the Waratah E&D Fund is a game-changer for M4E," said Sergio Castanho, CEO of M4E. "We have the assets, the team, and now the capital to aggressively explore and develop our lithium resources. LRC and Waratah's investment and expertise will be instrumental in accelerating our progress and creating significant value for all stakeholders."

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