European Lithium (ASX:EUR) has filed the Form F-4 Registration Statement (F-4) with the U.S. Securities and Exchange Commission (SEC) in connection with the business combination with Sizzle Acquisition Corp, (Nasdaq:SZZL).

Under the agreement, the company’s wholly owned subsidiary, European Lithium AT and its subsidiaries, ECM Lithium AT GmbH and ECM Lithium AT Operating GmbH, will merge with Sizzle via a newly formed, lithium exploration and development company named “Critical Metals Corp” which is expected to be listed on NASDAQ, under the symbol CRML.

Critical Metals Corp will own the Wolfsberg Lithium Project in Austria, an advanced hard rock lithium project, strategically located in the heart of Europe, a central hub as the world transitions toward clean energy solutions.

CRML will also hold a 20% interest in the Weinebene and Eastern Alps Projects currently held by European Lithium (ASX:EUR) and EUR will be the largest shareholder of CRML – and will continue to be listed on the ASX as a mining exploration and development company.


Transaction values EUR at US$972m

Notably, the implied equity value of the consideration to be paid for Wolfsberg under the transaction is US$750 million – which represents a massive increase to the current market capitalisation of EUR of approximately A$112 million to US$972 million as a whole.

That’s around $1.5 billion in Australian dollar terms.

The transaction will also provide the company access to opportunities in the US supply chain.

“We are pleased to reach this important step in the progress of the Transaction and plans to list Critical Metals Corp on Nasdaq,” EUR chairman Tony Sage said.

“Through the business combination with Sizzle, Critical Metals Corp expect to access substantial opportunities available in the U.S. market as they support the clean energy transition.”


Funding project construction and commissioning

Wolfsberg is poised to become the first major source of battery-grade lithium concentrate in Europe, the world’s leading EV market, capable of supporting the production of approximately 200,000 EVs per year.

It’s also strategically located nearby to several planned gigafactories which are planned to be built by battery suppliers and some of Europe’s leading automakers, seeking to satisfy the growing demand for lithium-ion batteries in the electric vehicle market.

The transaction is expected to provide approximately US$159 million in capital before expenses, which will provide Critical Metals with the resources anticipated to be required to advance construction and commissioning of Wolfsberg.

EUR says the Definitive Feasibility Study for the project is on-track to be delivered in Q1 2023.



This article was developed in collaboration with European Lithium (ASX:EUR), a Stockhead advertiser at the time of publishing.

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