European Lithium has received firm commitments from global institutional and sophisticated investors for a A$30 million placement at A$0.13 per share. The initial offer was oversubscribed 4 times over.
The funds will be used to advance the company’s Wolfsberg lithium project in Austria, including for:
- Strategic land acquisition;
- A resource extension drill program of Zone 2;
- Stage 1 of project development metallurgical test work for by-products;
- SRK consulting for JORC compliance; and
- For general exploration purposes and working capital.
Investors will also be issued one option (exercise price $0.18, expiring 31 March 2025) for every two shares issued.
Lead manager of the placement, Evolution Capital, will be paid 6% of the amount raised and – subject to shareholder approval – be issued one attaching option for every two placement options, on the same terms as the placement options.
Lithium supply in the heart of Europe
The Wolfsberg project sits within the heart of Europe and the company is confident it will provide significant lithium supply as the EV revolution sweeps through European automakers.
“The proceeds [will] be used to significantly advance the development of the Wolfsberg Lithium Project, as we continue to progress towards battery grade lithium production,” European Lithium (ASX:EUR) chairman Tony Sage said.
“While current work in the Ukraine has been suspended, we remain 100% committed to the people of Ukraine and look forward in time to continuing to develop Europe’s largest hard rock asset.
Results from process testing demonstrate battery grade lithium carbonate and lithium hydroxide can be produced from Wolfsberg ore.
This article was developed in collaboration with European Lithium Limited, 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.
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