European Lithium raises funds to advance DFS

According to Mining News Pro -Securing the funding provides the company an opportunity to fast-track completion of the DFS with a high degree of flexibility given the progress we have made in negotiations with potential partners,” said European Lithium chairperson Tony Sage.

The funding has been secured by way of issue of convertible securities in the company.

Under the facility agreement, European Lithium will receive an initial A$2.5-million, with a further A$7.5-million available in tranches of A$2.5-million on the company meeting key milestones relating to the DFS process, and standard conditions precedent.

The convertible notes are convertible at any time at the lower of A$30 or a 15% discount from the lowest volume weighted average price of European Lithium shares ten days prior to the conversion date.

The notes will have a maturity date of 12 months after their issue, and will bear no interest.

Once drawn down, European Lithium will have the option to repay the convertible notes at 110% premium to face value, if within 180 days if investment, or 115% thereafter.

The Wolfsberg lithium project is expected to deliver some 620 000 t/y run-of-mine production over a 12-year period, with the project’s prefeasibility study estimating an average production of 55 400 t/y of spodumene concentrate, with an average of 114 000 t of feldspar and 71 000 t of quarts as by-products.

European Lithium planned to convert the lithium in the spodumene concentrate to an average of 8 400 t/y of lithium hydroxide monohydrate at a hydrometallurgy plant to the south of the mine.