European Lithium lines up the perfect partner for Wolfsberg Lithium Project
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European Lithium is celebrating in Austria after signing a cooperation and offtake partnership for its Wolfsberg lithium project with international commodities trader Traxys Group.
The agreement will see Traxys retain an exclusive right to finalise an offtake deal with European Lithium (ASX:EUR) until the end of the March quarter.
The non-binding Memorandum of Agreement (MOA) brings added benefits to the Aussie-listed lithium developer, with Traxys also aiming to leverage its banking relationships to support EUR’s project financing in consideration of a potential direct investment.
European Lithium chairman Tony Sage says the partnership with Traxys is a trophy for the Wolfsberg poolroom.
“Finalising an offtake agreement is another key milestone for the Company and will add to recent developments at the Wolfsberg Project,” he said.
“In the current high lithium price environment, partnering with Traxys and leveraging their expertise will achieve the best result for shareholders while the Company retains flexibility.”
The deal is the latest in a Pre-Christmas cavalcade of wins for European Lithium, providing Sage’s team with strong, positive momentum for bringing Wolfsberg online.
If that wasn’t enough, more drilling results were fed into an updated resource estimate just one month later of 12.9 Mt @ 1.00% Li2O.
Testwork has also proven successful, producing a high-quality battery grade lithium product with few impurities.
The Traxys MoA firms up the commercial side of the equation, with EUR saying its partner has already introduced the company to financial institutions in relation to project finance, opening direct lines with potential lenders.
It provides Traxys with the right to negotiate commercial terms for lithium hydroxide and by-products from the Wolfsberg project.
“Traxys and the Company shall pursue expanding their cooperation to include Traxys financing of project product flows end-to-end along with logistical and risk management solutions for the project and products,” the company said.
Traxys is a very big fish in the global metals and minerals trade.
It’s set up in over 20 locations across the world, has some 450 employees, serves over 2,000 customers and 800 suppliers with coverage in key markets in Europe, Asia, North America, South America, Africa, and Australasia turning over more than US$6 billion in business every year..
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.