- European Lithium (EUR) receives firm commitments to raise $30 million via a share placement
- The funds will be raised through the issue of more than 230 million shares to global institutional and sophisticated investors at 13 cents
- Additionally, participants will receive one option for every two shares issued, exercisable at 18 cents with expiry on March 31, 2025
- EUR will use the money to advance the development of its Wolfsberg lithium project in Austria with work including metallurgical tests and consulting for JORC compliance
- Shares in European Lithium are down 6.25 per cent and are trading at 15 cents
European Lithium (EUR) has received firm commitments to raise $30 million via a share placement to advance the development of its Wolfsberg lithium project in Austria.
The funds will be raised through the issue of 230,769,237 shares to global institutional and sophisticated investors at 13 cents.
Additionally, participants will receive one option for every two shares issued, exercisable at 18 cents with expiry on March 31, 2025.
The placement will be managed by Evolution Capital which will be paid 6 per cent of the amount raised and, subject to shareholder approval, will be issued one attaching option for every two placement shares.
The planned work at Wolfsberg includes project development, metallurgical testing, consulting for JORC compliance and general exploration.
European Lithium will also use the money for strategic land acquisition.
The Wolfsberg project is in the middle of Europe and will provide a significant lithium supply to the growing electric vehicle market.
“We are delighted to have received firm commitments to raise $30 million with the proceeds to be used to significantly advance the development of the Wolfsberg lithium project, as we continue to progress towards battery grade lithium production,” Chairman Tony Sage said.
“While current work in Ukraine has been suspended we remain 100 per cent committed to the people of Ukraine and look forward in time to continuing to develop Europe’s largest hard rock asset.”
Shares in European Lithium were down 6.25 per cent at 15 cents at 12 noon AEST.