TIDMEUR
RNS Number : 7119Z
European Lithium Limited
22 September 2020
European Lithium Ltd
("European Lithium", "EUR" or "the Company")
EUROPEAN LITHIUM COMPLETES CAPITAL RAISING TO FUND METALLURGICAL
TEST WORK AND PROGRESS DFS
HIGHLIGHTS
-- $2.1M in funds received by way of a share placement (Placement)
-- Strongly supported by quality Institutional and Strategic Shareholders
Key development activities to be funded by the capital raising
include:
-- Progression of the Definitive Feasibility Study for the Wolfsberg Lithium Project
-- Metallurgical test work to confirm end-products for key customers and markets
-- Progression of permitting and approvals required to begin construction
-- Advance discussions with offtake and financing partners
-- Redeem 500 outstanding Winance notes
European Lithium Limited (ASX:EUR, FRA:PF8, AQSE:EUR, VSE:ELI)
(EUR or the Company) is pleased to announce that it has completed a
placement of 46.4m shares to raise Approxaimtely A$2.1m (before
costs) at $0.045 per share with a 1 for 4 free attaching unlisted
option (exercisable at $0.05 on or before 31 July 2022)
(Placement). The Placement, which was first announced on 2
September 2020, was strongly supported by a number of existing
shareholders and new sophisticated and professional investors and
investment funds (including Winance). The Placement was managed by
Empire Capital Partners who was paid a fee of 6% on amounts raised
under the Placement. Funds raised from the Placement will be
applied to metallurgical test work of bulk samples from the
Wolfsberg Lithium Project (Wolfsberg) to qualify product
specifications for offtake partners and end-use applications in
support of the Company's Definitive Feasibility Study (DFS), and to
redeem convertible notes issued to Winance with a face value of
$500,000.
The Placement shares are issued using the Company's capacity
under Listing Rule 7.1A, and without shareholder approval. The
issue of the attaching options is subject to shareholder approval,
which will be sought at the Company's forthcoming AGM.
The Company's strategic engagement with Talaxis Limited
(Talaxis) and subsequent appointment of Mr Kimon Gkomozias as
Executive Director to lead the Company's development strategy in
Europe will assist the Company tap into the European Battery
Alliance network, which is estimated to be worth EU$250 billion
from 2025 onwards:
" A secure and sustainable supply of raw materials is a
prerequisite for a resilient economy. For e-car batteries and
energy storage alone, Europe will for instance need up to 18 times
more lithium by 2030 and up to 60 times more by 2050. As our
foresight shows, we cannot allow to replace current reliance on
fossil fuels with dependency on critical raw materials. This has
been magnified by the coronavirus disruptions in our strategic
value chains. We will therefore build a strong alliance to
collectively shift from high dependency to diversified, sustainable
and socially-responsible sourcing, circularity and innovation ."
(Maroš efčovič, Interinstitutional Relations and Foresight,
European Commission)
Mr Kimon Gkomozias, Executive Director stated: "Despite the
impact of COVID-19 on car sales was most severe in Europe, in 2020
more EVs were sold in Europe than in China for the first time with
Europe's share in global BEV/PHEV sales increasing from 23% to 42%
within a year (ref: www.ev-volumes.com). Despite Europe's position
as the fastest growing EV manufacturing industry, it has zero
domestic production of battery-grade lithium hydroxide product with
close to 80% of its current supply coming from China.
The European Union (EU) has commenced an ambitious plan to build
and reshape its battery supply chain. The European Commission's
recently announced Action Plan on Critical Raw Materials, is
looking at the current and future challenges and actions to reduce
Europe's dependency on third world countries, diversifying supply
from both primary and secondary sources and improving resource
efficiency while promoting responsible sourcing worldwide. It
contains 30 critical raw materials. Lithium, which is essential for
a shift to e-mobility, has been added to the list for the first
time.
EUR is well timed and well positioned to benefit from Europe's
unprecedented need for lithium, contributing to the European
integration of the lithium supply chain and capitalizing on the
resulting growth of the regional lithium ecosystem."
The Wolfsberg Lithium Project is strategically located within
the fastest growing EV market and also within a growing cluster of
battery precursor manufacturers. EUR is well placed to service this
rapidly growing EU market. It's key investment highlights are as
follows:
-- 100% owned, high grade project with mining licence awarded
-- Substantial work performed by previous owners
-- Opportunity to fast track development to meet EU and global demand
-- Close to largest lithium import markets in EU - Germany,
Belgium, France, Italy and Spain and the coming battery projects in
Hungary, Germany, Sweden and Poland.
Winance notes
On 10 March 2020 the Company issued 2,000 convertible notes to
Winance, each with a face value of $1,000. The notes were issued
without shareholder approval using the Company's existing capacity
under Listing Rule 7.1.
In conjunction with the Placement, EUR and Winance have agreed
to vary the note terms, with 500 notes being redeemed from the
proceeds of the placement for a total of $636,364. The terms of the
remaining notes on issue (1,000) are unchanged (as set out in the
Company's announcement made 31 July 2019 and the Company's notice
of meeting announced on 28 October 2019).
This announcement has been authorised for release to the ASX by
the Board of the Company.
Tony Sage
Non-Executive Chairman
European Lithium Limited
- END -
Visit the Company's website (www.europeanlithium.com) to find
out more about the advanced Wolfsberg Lithium Project located in
Austria.
For further information please contact:
European Lithium Ltd +61 861 819 792
Tony Sage ir@europeanlithium.com
AQSE Corporate Adviser +44 207 220 1666
James Joyce
James Sinclair-Ford
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