Core Viewpoint - International Battery Metals Ltd. (IBAT) has entered into subscription agreements to issue US$5 million in units to Encompass Capital Advisors LLC, aimed at funding its modular direct lithium extraction plant and general corporate purposes [1][3]. Group 1: Offering Details - The offering will consist of 25,765,258 units at a deemed issue price of approximately US$0.19406, resulting in aggregate gross proceeds of US$5 million [3]. - Each unit will include one common share and one warrant, with the warrant allowing the holder to acquire one common share at an exercise price equal to the market price, valid for three years from issuance [2][3]. - The expected closing date for the offering is around August 8, 2025, pending approval from the TSX Venture Exchange [3]. Group 2: Additional Investment Rights - Encompass has the right to purchase up to US$2 million of additional units at its discretion until December 31, 2025, under terms at least as favorable as those in the initial subscription agreements [4]. Group 3: Use of Proceeds - Proceeds from the offering will be allocated to preparing IBAT's modular direct lithium extraction plant for future operations and for general corporate purposes [3]. Group 4: Related Party Transactions - The participation of Encompass in the offering constitutes a related party transaction, with the company relying on exemptions from formal valuation and minority shareholder approval requirements [11]. Group 5: Warrant Amendments - Concurrently with the offering, the company will extend the expiration dates of existing warrants held by Encompass and EV Metals, aligning them with the new warrants issued in the offering [9][10].