European Lithium picks up stake in two Austrian lithium projects
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European Lithium (ASX:EUR) is expanding its footprint after reaching an agreement to acquire a 20 per cent stake in two Austrian lithium projects.
Importantly, Jadar Resources’ (ASX:JDR) Weinebene and Eastern Alps projects are adjacent to the company’s flagship Wolfsberg lithium project, which creates potential synergies for development and production.
European Lithium had acquired the stake in the two projects from Exchange Minerals Limited for $125,000 in cash and 6.67 million EUR share after Jadar waived its first right of refusal over the 20 per cent stake.
Both European Lithium and Jadar have also agreed to a pre-emptive right over their respective stakes should either party choose to sell their interest in the projects.
Wolfsberg has a resource of 11Mt grading 1 per cent lithium oxide with drilling currently underway to upgrade resources.
“This is a fantastic result and gives European Lithium access to a greater portfolio of highly prospective Austrian lithium projects which have the potential to increase the useful life of the proposed infrastructure for our Wolfsburg Lithium Project,” European Lithium chairman Tony Sage said.
“The proximity of Jadar’s lithium Projects to Wolfsberg presents a number of potential synergistic benefits for both companies and we look forward to beginning work to further the exploration activities at the projects.”
As part of the agreement, the two companies will form a technical advisory committee with European Lithium appointing two of the three members.
This committee will promote joint collaboration by identifying the best options to advance these assets and operations.
The Weinebene project is adjacent to and overlaps the Wolfsberg deposit in some areas.
European Lithium believes that the veins that comprise the JORC resource at Wolfsberg extend into the Weinebene project area.
Initial boulder sampling by Jadar returned high-grade lithium oxide values, though it noted that the boulders might not represent the strike extent of the veins.
The Eastern Alps project contains indications of high-grade lithium targets with significant residual brownfields plus greenfields exploration potential across the entire 64.1sqkm project area.
Jadar had previously identified several prospect areas that require follow-up evaluation and drill testing.
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.