European Lithium raises $6.5m to finalise Wolfsberg feasibility study
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Investors have demonstrated their confidence in European Lithium and its Austrian project by committing to a $6.5m share placement priced at 6.25 cents per share.
Proceeds from the placement will be used to fund the definitive feasibility study and general exploration for the Wolfsberg lithium project where infill drilling has returned thick, lithium-rich pegmatites.
Institutional investors in European Lithium’s (ASX:EUR) placement will also receive one listed option exercisable at 7.5c and expiring on 14 April 2024 for every two shares subscribed.
“It’s fantastic to get support from institutional investors and to also have the funds necessary to finalise the DFS,” chairman Tony Sage said.
“Both the drilling and metallurgical work is almost complete and the results will be available in September.”
The drill program is aimed at moving more of the current Inferred resource of 4.98 million tonnes grading 0.78% lithium oxide to the higher confidence Measured and Indicated categories.
Wolfsberg already hosts a measured and indicated resource of 6.3Mt at 1.17% lithium oxide.
The project is located 270km south of Vienna in Carinthia and just 20km east of its namesake industrial town, which is well serviced by established infrastructure including access to the European motorway and rail network.
Its location makes Wolfsberg ideally suited to fulfill Europe’s growing appetite for battery metals as adoption of electric vehicles and zero emissions energy gains traction.
A 2018 pre-feasibility study based on the current measured and indicated resource estimated a net present value at the time of US$339.4m on an accelerated 10-year production timetable.
According to that study, European Lithium would produce about 10,129 tonnes of lithium hydroxide per annum over that period at Wolfsberg.
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.