European Lithium has advanced its strategy of investing in and developing its European battery metal assets with the sale of a non-core tenement in Western Australia’s northwest to Moosh Moosh Limited.

Under the binding term sheet with the BVI-registered Moosh, the company will receive consideration of $1m in cash or equivalent in shares of an ASX-listed company for 100% of E47/4144.

The tenement, which was first secured in a ballot in September 2020, surrounds the Mt Anketell iron ore deposit and is located in the same region as De Grey Mining’s outstanding and play-opening Hemi gold discovery.

Whilst the sale will allow European Lithium (ASX:EUR) to realise value from its non-core assets and concentrate on European-based projects and investments in the battery metals space, the company will retain a measure of exposure to any upside in the tenement through a 1% net smelter royalty on minerals extracted from the tenement.

“The sale of our non-core Australian tenement aligns with our strategy to focus our attention on securing battery commodities for Europe’s green energy transition,” chairman Tony Sage said.

The sale is expected to be completed by 29 September 2023 and Moosh is required to pay the company $100,000 for maintaining the tenement in good order during the due diligence period. This payment is refundable if the transaction falls through.


European focus

European Lithium holds the Wolfsberg lithium project in Austria which is the subject of a transaction with Sizzle Acquisition Corp (Nasdaq:SZZL) that will really underscore its real value.

The project’s value hasn’t always been clear despite having a Measured, Indicated and Inferred Resource of 12.88Mt grading 1% Li2O, a secured mining permit, a Definitive Feasibility Study highlighting its economic viability, and a binding offtake agreement with a top tier car manufacturer.

This clarity will be highlighted by the merger between EUR’s wholly owned subsidiary European Lithium AT, which holds 100% of Wolfsberg, and Sizzle to form Critical Metals Corp (CRML).

Once this is completed, European Lithium will be issued with US$750m worth of shares in CRML, which also grants it a majority stake in the new company.

CRML will also hold a 20% interest in the Weinebene and Eastern Alps projects that are currently held by European Lithium.

To date, about 65% of Wolfsberg’s total expected Capex has been secured through an agreement with Saudi Arabia’s Obeikan Investment Group and a more recent US$125m share subscription facility that CRML entered with GEM Global Yield.

Sage noted last week that the deal with GEM brought the company closer towards its stated goal of becoming the first local producer of lithium spodumene for the green energy transition in Europe.



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.