SEC green lights Wolfsberg merger worth US$750m for European Lithium

SEC approves F-4 for Critical Metals Corp to list on NASDAQ
Approval paves way for European Lithium’s Wolfsberg project to be merged with Sizzle
EUR to be awarded US$750m worth of CRML shares on its listing

Special Report: The big pay day for European Lithium is a step closer after the US Securities and Exchange Commission declared the crucial F-4 effective.

The approval of the F-4 paves the way for the delivery of serious value to the company’s shareholders.

Under the agreement between European Lithium (ASX:EUR) and publicly traded special purpose acquisition company Sizzle Corp (NASDAQ:SZZL), EUR’s Wolfsberg lithium project in Austria will be merged with Sizzle to form Critical Minerals Corp, which will list on NASDAQ under the symbol CRML.

Once it lists, EUR will be issued with US$750m ($1.09bn) worth of shares in CRML – implying that Wolfsberg project is worth considerably more than it is currently valued on the ASX given the company’s current market capitalisation of ~$131m.

Approval from EUR shareholders has been in place since 20 January 2023.

Seeking approval

A special meeting of Sizzle’s stockholders will be carried out on or around 23 January 2024 to approve the proposed merger.

Once approval is secured, Critical Minerals will be listed and EUR issued with the shares.

“The company is excited to announce the SEC has declared the F-4 effective,” EUR chairman Tony Sage said.

“We look forward to the completion of the transaction and the proposed listing on the NASDAQ that offers increased access to US capital markets as the Critical Metals team works to successfully commercialise Wolfsberg. The listing on NASDAQ is also expected to create a significant increase in shareholder value.”

More than Wolfsberg

While Wolfsberg is set to deliver a step-change in the company’s valuation, it is by no means the only project in its portfolio.

EUR also holds a package of three projects consisting of 245 exploration licences covering a 114.6km2 area in the Styria mining district about 70km north of Wolfsberg.

Collectively known as the Austrian lithium projects, the licences are prospective for lithium occurrences with initial surface sampling returning assays of up to 3.98% Li2O.

The company intends to shortly commence work on the projects with the initial focus on the Bretstein-Lachtal project area, which is considered the most prospective of the three projects.

Previous reconnaissance by vendor Richmond Minerals found multiple pegmatites, confirming earlier findings, with 10cm wide crystal chips and pegmatites with sample grades from 0.51%-2.67% Li2O.

While little is known about existing outcrops and the spatial distribution of pegmatites at Wildbachgraben and Klementkogel, spodumene bearing pegmatites have been reported in past academic work stretching back to the 1980s.

Other investments

EUR also expects its Ukrainian lithium assets to be the key focus for its efforts once political events allow.

It holds the Dobra and Shevchenkivske projects that are currently the subject of applications for 20-year special permits for the extraction and production of lithium.

Other assets held by the company include a 11.3% interest in Cyclone Metals (ASX:CLE), which recently acquired 100% of the Iron Bear magnetite iron ore project in Canada’s Labrador trough region and 15 million shares in CuFe (ASX:CUF), which exports iron ore from its Wiluna deposit.

It also holds a 7.5% equity interest in Tanbreez Mining Greenland, which holds an exploitation permit for rare earths in Greenland.

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.