The US$125m share subscription facility is another sign of confidence in CRML and the Wolfsberg lithium project in Austria. Pic: via Getty Images
Mining
Development path of European Lithium’s Wolfsberg lithium project in Austria is clearing after Critical Metals Corp. entered into a US$125m share subscription facility with GEM Global Yield.
The funding from Luxembourg-based private alternative investment group GEM Global Yield is a clear sign of confidence in Critical Metals Corp (CRML).
CRML is the proposed merger between the company’s wholly owned subsidiary European Lithium AT, which holds the Wolfsberg project in Austria, and Sizzle Acquisition Corp (Nasdaq:SZZL).
Proceeds from this facility will be used to accelerate development of the project with European Lithium (ASX:EUR) chairman Tony Sage noting that about 65% of the total expected Capex has been secured to date from the latest deal and the previous agreement with Saudi Arabia’s Obeikan Investment Group.
Sage added that the GEM deal was a huge milestone that brought it closer to its stated goal of becoming the first local producer of lithium spodumene for the green energy transition in Europe.
The company also continues to progress the CRML transaction, which is currently making its way through the approval process – including approval from Sizzle’s shareholders.
What the CRML transaction really delivers for European Lithium is its recognition of Wolfsberg’s value – something that hasn’t always been clear despite the project having a Measured, Indicated and Inferred Resource of 12.88Mt grading 1% Li2O, a secured mining permit, Definitive Feasibility Study highlighting its economic viability, and a binding offtake agreement with a top tier car manufacturer.
This is clearly highlighted by the transaction terms, which will see the company become a majority owner of CRML after it is issued US$750m worth of shares in the new company.
CRML will own Wolfsberg and a 20% interest in the Weinebene and Eastern Alps projects that are currently held by European Lithium.
Upcoming catalysts for developing the project include finalising funding for its infrastructure requirements, commencing construction, and undertaking resource extension drilling in Zone 2, which is not included in the current resource, to increase mine life.
This article was developed in collaboration with European Lithium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
