TIDMEUR
RNS Number : 6066D
European Lithium Limited
29 October 2020
29 October 2020
European Lithium Ltd
("European Lithium", "EUR" or "the Company")
QUARTERLY ACTIVITIES REPORT AND APPIX 5B
FOR THE QUARTERING 30 SEPTEMBER 2020
The Board of European Lithium Limited (ASX: EUR, FRA: PF8, VSE:
ELI, NEX: EUR ) (the Company) is pleased to present its activities
report and Appendix 5B for the three months ending 30 September
2020.
SUMMARY OF KEY UPDATES
-- Completion of placement to raise proceeds of approximately $2.1m (before expenses);
-- EUR secures E47/4144 in ballot under the WA Mining Act held
on 18 September 2020. The ballot was contested by 13 other
applicants in addition to EUR;
-- COVID-19 pandemic and government enforced rules, related to
international travel in particular, continues to impact operations
and force EUR to observe closely any changes in government
restrictions both in Austria and Australia;
-- Company has recommenced operations in Austria after the
lifting of some restrictions, which would otherwise prevent
operational activities as reported for the previous periods;
-- Receipt of the decree for drill holes with more than 300m of
depth covering phase 2 of the drilling program in Zone 1 received,
tender process has commenced; and
-- Dorfner/Anzaplan lock cycle tests to recommence, the final
report will be published once results are received and
processed.
CORPORATE MATTERS
Board Restructure
During the quarter, the Company announced the appointment of Mr
Kimon Gkomozias As Executive Director and the resignation of Mr Tim
Turner as Non-Executive Director of the Company with effect from 2
September 2020.
Placement
During the quarter, the Company issued 46,363,643 shares at an
issue price of $0.045 per share with a 1 for 4 free attaching
unlisted option (exercisable at $0.05 on or before 31 July 2022) to
raise proceeds of approximately $2.1m (before expenses)
(Placement).
The Placement was managed by Empire Capital Partners who was
paid a fee of 6% on amounts raised under the Placement. The
Placement shares were 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 AGM on 30 October 2020.
Winance Financing Facility
The Company previously announced that it had secured a A$10m
finance facility with Winance Investment LLC ( Winance ) (refer ASX
Announcement 31 July 2019).
On 5 March 2020, the Company announced that it had agreed to
draw down A$2.0m (2,000 convertible notes) under the Winance
facility ( Tranche 2 ) of which funding of A$1.0m (before expenses)
was received during the September 2020 quarter.
During the quarter, Winance converted 200 convertible notes from
Tranche 2 with 500 notes being redeemed from the proceeds of the
Placement.
At 30 September 2020, there were 1,000 convertible notes
remaining from the Tranche 2 drawdown.
Share Purchase Plan
On 23 September 2020, the Company offered all existing eligible
investors the opportunity to subscribe for new shares at $0.0475
per Share up to a maximum of 631,579 shares (maximum of $30,000)
per investor under a Share Purchase Plan ( SPP ). The SPP will be
capped at $2.0M. Funds raised under the SPP will be used primarily
towards exploration on E47/4144.
Capital Movements
During the quarter, the Company issued the following
securities:
-- 20 July 2020 - 3,636,363 shares issued to Winance upon the
conversion of 200 convertible notes and 3,030,303 shares issued to
Winance for the conversion of debt in relation to the Winance
shortfall amount payable (refer to the 2019 AGM notice of meeting
for further details)
-- 22 September 2020 - 44,363,643 shares issued pursuant to the
Placement
-- 23 September 2020 - 2,000,000 shares issued pursuant to the
Placement and 1,800,000 shares issued to Empire Capital Partners to
convert $81,000 of debt into equity
-- 9 October 2020 - 1,000,000 shares issued to Empire Capital
pursuant to a corporate advisor mandate and 106,383 shares issued
to convert $5,000 of debt into equity
Appendix 5B Quarterly Report and Statement of Cash Flows
The ASX Appendix 5B quarterly report is attached to and lodged
with this report. The Company's Appendix 5B Quarterly Report covers
the 3-month period from 1 July 2020 to 30 September 2020.
Payments to Related Parties and their Associates
In accordance with ASX Listing Rule 5.3.5, payments to related
parties of the Company and their associates during the quarter
totalled $95,620 relating to the Executive Director salaries and
Non-Executive Director fees and office occupancy expenses. This
amount is included at Item 6.1 of the Appendix 5B.
Refer to the Remuneration Report in the Annual Report for
further details on director remuneration and related party
transactions.
EXPLORATION AND DEVELOPMENT ACTIVITIES
Wolfsberg Lithium Project
COVID-19
Q3/2020 continued to present a number of challenges for
commodity markets due to the impact of the coronavirus pandemic.
The situation is still highly uncertain with governments, companies
and individuals required to follow recommendations to help in
controlling the rate of infection at a global scale. Although
circumstances have changed during the quarter with some easing of
restrictions, travel restrictions are impacting the Company
directly. The easing of some restrictions by the relevant
government bodies has allowed the Company to recommence operational
activities at its Wolfsberg Lithium project in Q3/2020.
Drilling
In Q3/2020, the Company was issued the decree to drill the deep
holes with more than 300m of depth covering phase 2 of the drilling
program in Zone 1. The Company has commenced the tender process for
the drilling contractor and is in the process of engaging relevant
consultants to supervise the progress of these exploration
activities. As some of these contractors are not based in Austria,
the Company anticipates some delays may occur due to differing
regulations and restrictions during the COVID-19 pandemic
period.
Definitive Feasibility Study (DFS)
With the receipt of the decree in Q3/2020 for the deep hole
drilling program in Zone 1, the Company is in a position to
recommence the Phase 2 resource drilling program in Zone 1 as an
essential part of the DFS.
The Company reported in Q4/2019 and Q1/2020 that
Dorfner/Anzaplan completed the metallurgical test work to assess
and optimize process lines, flowsheets and layouts. The results and
scope of work have been reviewed and the remaining lock cycle tests
were pending during Q2/2020 to assess sufficiently the process to
produce reliable results for the Lithium Hydroxide product. As
advised in the Company's Q2/2020 report, Dorfner/Anzaplan were
advised to recommence the lock cycle tests In Q3/2020. The Company
has been advised by Dorfner/Anzaplan that the final results for
these tests can be expected in Q1/2021. This metallurgic test work
will also take place at the pilot plant for the Wolfsberg Lithium
Project at Dorfner/Anzaplan's testing facility in Hirschau,
Germany. At the completion and review of this work the detailed
technical report will be published.
In Q3/2020, DRA Global were directed to recommence activities
that includes supply of the independent assessment of the
metallurgical work at the Dorfner/Anzaplan testing facility.
Hydrogeology
The Company continues with its hydrogeology monitoring
program.
All hydrogeological data continues to be stored and secured into
the Company's database.
The preparation work by SRK, and the geological consultant, GEO
Unterweissacher, continues to ensure in-hole hydrogeological test
work has been completed appropriately and can continue in the
future.
Data from the above activities is fed into a water measuring
database from which an annual report is produced.
Environmental
No environmental work has been carried out in Q3/2020.
Monitoring of water flows and quality from the mine is
continuous.
Product Marketing
The strategy for the Company remains unchanged and focuses on
the supply of lithium hydroxide to the nascent lithium battery
plants of Europe. The Company is in discussion with a number of
industry players regarding future off-take contracts and good
progress has already been made in the advanced discussions with
potential off-take partners.
Horizon 2020
In Q2/2020, the Company's 100% owned subsidiary ECM Lithium AT
GmbH (ECM) commenced participation in the European Union funded
Horizon 2020 - GREENPEG programme.
It is expected that a fully European Union funded geophysical
survey program to support the database for the DFS will commence in
Q4/2020 as part of the GREENPEG programme.
The Company continued to work proactively in the already
approved and funded Horizon 2020 LithRef programme.
Continued participation shows the Company's abilities and
eligibility to contribute with EU-level support to the sustainable
supply of battery grade lithium, sourced and produced in
Europe.
Australia
E47/4144
On 23 March 2019 tenement E47/1462-I, held by MCC Australia
Sanjin Mining Pty Ltd, expired and was not renewed in the required
time. At 8:30am on 25 March 2019 the Company applied for
exploration licence E47/4144 under section 58 of the Western
Australia Mining Act 1978 ( Mining Act ). At the same time the
Department of Mines, Industry Regulation and Safety ( DMIRS )
received applications for 13 other exploration licences over the
same or a similar area. Under section 105A(3) of the Mining Act
these tenements (14 in total numbered from E47/4136 to 4149
consecutively) were placed into a ballot that was drawn on 18
September 2020.
EUR tenement E47/4144 was drawn first in matters 4, 5 and 7
relating to the ballot. The Company confirmed the new tenement
blocks with DMIRS on 21 September 2020 and, when granted, the
configuration of E47/4144 will be as per the map below which
equates to approximately 130km2.
[ Insert link to Figure 1 - Cape Lambert Ballot Tenements -
Ballot Outcome]
Subject to Ministerial approval and upon grant, E47/4144 to be
100% legal owned by EUR and 50% beneficially held by EUR, with the
remaining 50% held by Wombat Pty Limited, an unrelated private
company that identified the application. The parties will in due
course negotiate terms upon which activities will be carried out on
the tenement.
Tony Sage
Non-Executive Chairman
Competent Person's Statement
The information in this announcement pertaining to the Wolfsberg
Lithium Project, and to which this statement is attached, relates
to Project Development and Metallurgical Studies and is based on
and fairly represents information and supporting documentation
provided by the Company and its Consultants and summarized by
Dietrich Wanke who is a Qualified Person and is a Member of the
Australian Institution of Mining and Metallurgy (AusIMM) since 2006
with about 30 years' experience in the mining and resource
development industry. Dietrich Wanke has sufficient experience, as
to qualify as a Competent Person as defined in the 2012 edition of
the "Australian Code for Reporting of Mineral Resources and Ore
reserves". Dietrich Wanke consents to the inclusion in the report
of the matters based on information in the form and context in
which it appears. The company is reporting progress on project
development and metallurgical results under the 2012 edition of the
Australasian Code for the Reporting of Results, Minerals Resources
and Ore reserves (JORC code 2012).
Tenement Status
The mining tenements held at the end of the quarter, acquired
and disposed of during the quarter and their location:
Acquired Disposed
interest interest Interest
during the during the at the end
Tenement reference Location quarter quarter of the quarter
104/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
105/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
106/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
107/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
108/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
109/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
110/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
111/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
112/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
113/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
114/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
115/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
116/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
117/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
118/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
119/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
120/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
121/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
122/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
123/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
124/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
125/96 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
370/11(611/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
371/11(612/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
372/11(613/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
373/11(614/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
374/11(615/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
375/11(616/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
378/11(619/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
379/11(620/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
380/11(621/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
381/11(622/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
382/11(623/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
383/11(624/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
384/11(625/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
386/11(627/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
387/11(628/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
388/11(629/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
389/11(630/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
390/11(631/11) Wolfsberg Project, Austria - - 100%
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391/11(632/11) Wolfsberg Project, Austria - - 100%
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392/11(633/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
394/11(636/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
395/11(637/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
396/11(638/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
397/11(639/11) Wolfsberg Project, Austria - - 100%
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398/11(640/11) Wolfsberg Project, Austria - - 100%
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400/11(645/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
401/11(646/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
402/11(647/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
403/11(648/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
408/11(648/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
409/11(641/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
412/11(649/11) Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
Andreas 1 Wolfsberg Project, Austria - - 100%
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Andreas 2 Wolfsberg Project, Austria - - 100%
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Andreas 3 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
Andreas 4 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
Andreas 5 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
Andreas 6 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
Andreas 7 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
Andreas 8 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
Andreas 9 Wolfsberg Project, Austria - - 100%
--------------------------- ------------ ------------ ----------------
1 Appendix 5B
1.1 Mining exploration entity or oil and gas exploration
entity
quarterly cash flow report
1.2 Name of entity
---------------------------------------------------
European Lithium Limited
1.3 ABN 1.4 1.5 Quarter ended ("current
quarter")
--------------- ----------------------------
45 141 450 624 30 September 2020
----------------------------
1.6 Consolidated statement of Current quarter Year to date
cash flows (3 months)
$A'000 $A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (486) (486)
(b) development - -
(c) production - -
(d) staff costs - -
(e) administration and corporate
costs (814) (814)
1.3 Dividends received (see note - -
3)
1.4 Interest received - -
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Government grants and tax - -
incentives
Other (promotion and marketing
1.8 expenses) (117) (117)
Other (overseas listing fees) (144) (144)
Other (arbitration costs) (260) (260)
---------------- -------------
Net cash from / (used in)
1.9 operating activities (1,821) (1,821)
----------------- ----------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire or for:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal
of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other - -
entities
2.4 Dividends received (see note - -
3)
2.5 Other (provide details if - -
material)
---------------- -------------
2.6 Net cash from / (used in) - -
investing activities
----------------- ----------------------------------- ---------------- -------------
3. Cash flows from financing
activities
Proceeds from issues of equity
securities (excluding convertible
3.1 debt securities) 2,086 2,086
Proceeds from issue of convertible
3.2 debt securities 1,000 1,000
3.3 Proceeds from exercise of - -
options
Transaction costs related
to issues of equity securities
3.4 or convertible debt securities (123) (123)
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings (636) (636)
3.7 Transaction costs related - -
to loans and borrowings
3.8 Dividends paid - -
3.9 Other (provide details if - -
material)
---------------- -------------
Net cash from / (used in)
3.10 financing activities 2,327 2,327
----------------- ----------------------------------- ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 301 301
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (1,821) (1,821)
4.3 Net cash from / (used in) - -
investing activities (item
2.6 above)
Net cash from / (used in)
financing activities (item
4.4 3.10 above) 2,327 2,327
Effect of movement in exchange
4.5 rates on cash held (8) (8)
---------------- -------------
Cash and cash equivalents
4.6 at end of period 799 799
----------------- ----------------------------------- ---------------- -------------
5. 1.7 Reconciliation of cash Current quarter Previous quarter
and cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 799 301
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 799 301
----------------- ----------------------------------- ---------------- -----------------
6. 1.8 Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 96
----------------
6.2 Aggregate amount of payments to related -
parties and their associates included in
item 2
----------------
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly
activity report must include a description of, and an explanation
for, such payments.
7. 1.9 Financing facilities Total facility Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end $A'000
arrangements available to $A'000
the entity. 1.10 Add notes
as necessary for an understanding
of the sources of finance
available to the entity.
7.1 Loan facilities 10,000,000 4,000,000
------------------- ----------------
7.2 Credit standby arrangements - -
------------------- ----------------
7.3 Other (please specify) - -
------------------- ----------------
7.4 Total financing facilities 10,000,000 4,000,000
------------------- ----------------
Unused financing facilities available at
7.5 quarter end 6,000,000
----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
----------------- --------------------------------------------------------------------------
Winance Facility
On 31 July 2019, the Company entered into a Convertible
Note Agreement with Winance Investment LLC (Winance) of
which A$2.0m (2,000 convertible notes) was drawn down
on 20 September 2019 (Tranche 1). As at 30 June 2020,
there were nil convertible notes remaining from the Tranche
1 drawdown.
The face value of each convertible note is AU$1,000 and
are non-interest bearing. The notes are convertible to
a variable number of ordinary shares at the option of
the holder of the notes any time after issue. If not converted
the notes mature and are repayable twenty-four (24) months
after the issue date. The conversion price for each convertible
note is the lower of an 8% discount from the lowest VWAP
over ten (10) days prior to the conversion date, provided
that the conversion price shall not in any case be lower
than $0.055 (floor price).
Refer to ASX announcement dated 31 July 2019 and notice
of meeting dated 28 October 2019 for material terms and
conditions.
On 5 March 2020, the Company announced that it had agreed
to draw down a further A$2.0m (2,000 convertible notes)
under the Winance facility (Tranche 2). During the June
2020 quarter, the Company received Tranche 2 funding of
A$1.0m (before expenses) and subsequently 1,000 convertible
notes were released from escrow. During the quarter, the
Company has received the final Tranche 2 funding of A$1.0m
and released the remaining 1,000 convertible notes from
escrow.
Further drawdowns of A$6m (in addition to the A$3m received
and $1m received by the Company subsequent to 30 June
2020) are at the Company's election available in tranches
of A$1m each upon full conversion of the notes from the
previous drawdown, subject to a cooling off period calculated
based on the value of the tranche and average trading
volumes during the preceding 60-day period and prior approval
by EUR's shareholders.
-----------------
8. 1.11 Estimated cash available for future $A'000
operating activities
8.1 Net cash from / (used in) operating activities (1,821)**
(item 1.9)
8.2 (Payments for exploration & evaluation classified -
as investing activities) (item 2.1(d))
Total relevant outgoings (item 8.1 + item
8.3 8.2) (1,821)
8.4 Cash and cash equivalents at quarter end 799
(item 4.6)
8.5 Unused finance facilities available at quarter -*
end (item 7.5)
-----------
8.6 Total available funding (item 8.4 + item 799
8.5)
-----------
Estimated quarters of funding available
8.7 (item 8.6 divided by item 8.3) 0.44
-----------
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters
of funding available must be included in item 8.7.
* As outlined above in section 7, further drawdown on
the Winance facility is subject to full conversion of
the notes from the previous drawdown. As at 30 September
2020, there were 1,000 convertible notes remaining from
the Tranche 2 drawdown.
** Following the receipt of Tranche 2 funding, the Company
made certain creditor payments during the quarter. As
such, net cash used in operating activities of ($1,821k)
in the September 2020 quarter is not representative of
the Company's current level of net operating cash flows.
8.8 If item 8.7 is less than 2 quarters, please provide answers
to the following questions:
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for
the time being and, if not, why not?
--------------------------------------------------------------------
No. Expenditure in the current quarter reported under
net cash used in operating activities is not representative
of the Company's current level of net operating cash flows
due to the payment of certain creditor payments during
the quarter.
--------------------------------------------------------------------
8.8.2 Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
--------------------------------------------------------------------
Yes. As announced on 23 September 2020, the Company is
undertaking a share placement plan to raise funds up to
A$2m.
The Company also continues to seek alternative funding
options.
--------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and, if
so, on what basis?
--------------------------------------------------------------------
Yes. The Directors believe that it is reasonably foreseeable
that the Company will continue as a going concern based
on the following factors:
* Raising additional funds (as outlined above)
* Continued support from certain external creditors
allowing for the deferred payment of certain
liabilities
* Continued support from current debt holders of the
Company
--------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of questions
8.8.1, 8.8.2 and 8.8.3 above must be answered.
----------------- --------------------------------------------------------------------
1.12 Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 29 October 2020...................................................................................
Authorised by: Board of
Directors...........................................................................
(Name of body or officer authorising release - see note 4)
1.13 Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [name of
board committee - eg Audit and Risk Committee]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations, the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
- END -
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014
Visit the Company's website 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 info@europeanlithium.com
NEX Corporate Adviser +44 207 220 1666
James Joyce
James Sinclair-Ford
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