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European Lithium Limited (ASX: EUR, FRA: PF8, OTC: EULIF) (EUR or the Company) is pleased to announce it has signed a multi-tiered non-binding Memorandum of Agreement (MOA) with Traxys Europe S.A. (Traxys) to support the development and commercialisation of the Wolfsberg Lithium Project in Austria (WolfsbergProject).
- EUR agrees to pursue a cooperation and offtake partnership with Traxys to develop the theWolfsberg LithiumProject;
- Traxystoretainexclusivityuntilendoffirstquarter2022tofinaliseofftakeagreementwith theCompany;
- Traxys will aim to leverage its banking relationships to support EUR to structure appropriate project financing and provide working capital to the project; and
- Traxys to consider a direct investment in the company.
Under the MOA, EUR will work with Traxys to negotiate suitable commercial terms for a product offtake and/or marketing agreement for EUR’s Lithium Hydroxide (LiOH) and, if applicable, any by-products from the Wolfsberg Project (OfftakeAgreement) and has granted Traxys exclusivity until the end of the first quarter of 2022 to finalise the agreement.
The cooperation will also include Traxys’ support to the Company to secure working capital and other project financing facilities for the development of the Wolfsberg Project. Traxys has already introduced the Company to financial institutions in relation to project finance that have opened direct communications with potential lenders.
This article includes content from European Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.