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European Lithium Limited (ASX:EUR, FRA:PF8, OTC:EULIF) (EUR or the Company) is pleased to announce that it has received firm commitments from global institutional and sophisticated investors to raise A$30 million through a placement at A$0.13 per share (Placement Shares). Investors will also be issued one option (exercise price $0.18, expiring 31 March 2025) for every two shares issued (Placement Options).
Funds raised will be used for strategic land acquisition, a resource extension drill program of Zone 2 at the Company’s Wolfsberg Lithium Project (Wolfsberg Project or Wolfsberg), stage 1 of project development metallurgical test work for by-products from Wolfsberg, SRK consulting for JORC compliance, for general exploration purposes and working capital.
The Wolfsberg Project sits within the heart of Europe and will provide significant supply of lithium as the EV revolution sweeps through European automakers. Results from process testing demonstrate battery grade lithium carbonate and lithium hydroxide can be produced from Wolfsberg ore.
Placement Shares will be issued without shareholder approval relying on the Company’s capacity under Listing Rule 7.1 and 7.1A. The Placement Options are subject to shareholder approval, which will be sought as soon as practicable. The Company will seek to have the Placement Options quoted.
EUR Chairman Tony Sage commented, said “We are delighted to have received firm commitments to raise A$30 million (before costs) with the proceeds to be used to significantly advance the development of the Wolfsburg Lithium Project, as we continue to progress towards battery grade lithium production. While current work in the Ukraine has been suspended we remain 100% committed to the people of Ukraine and look forward in time to continuing to develop Europe’s largest hard rock asset. I would like to thank shareholders for their support to date and we look forward to a very exciting 2022 for the Company”.
The placements lead manager is Evolution Capital Pty Ltd (Evolution). Evolution will be paid 6% of the amount raised and, subject to shareholder approval, be issued one attaching option for every two Placement Options, on the same terms as the Placement Options.
This announcement has been authorised for release to the ASX by the Board of the Company.
European Lithium Limited
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