- European Lithium (EUR) receives firm commitments to undertake a $6.5 million placement
- A total of 104 million fully paid ordinary shares will now be issued to sophisticated investors at 6.2 cents
- Investors will also receive one listed option for every two shares subscribed for, exercisable at 7.5 cents with expiry on April 19, 2024
- Once received, European Lithium will use the money to fund the definitive feasibility study at its Wolfsberg Lithium Project in Austria
- Shares in European Lithium are down 1.47 per cent and are trading at 6.7 cents at 2:26 pm AEST
European Lithium (EUR) has received commitments to undertake a $6.5 million placement.
A total of 104 million ordinary fully paid ordinary shares will now be issued to sophisticated investors at 6.2 cents.
Investors will also receive one listed option for every two shares subscribed for, exercisable at 7.5 cents with expiry on April 19, 2024.
The placement will be led by Evolution Capital Advisors who will be paid six per cent of the amount raised, two million shares and 20 million options.
Once received, European Lithium will use the money to fund the definitive feasibility study (DFS) at its Wolfsberg Lithium Project.
The Wolfsberg Project lies 270 kilometres south of Vienna in Austria and consists of 22 original and 32 overlapping exploration licences.
The definitive feasibility study is currently underway and is expected to be completed in Q4 2021, subject to COVID-19 restrictions.
European Lithium is also aiming to begin lithium hydroxide production by the end of 2023.
Chairman Tony Sage is pleased with the support received.
“It’s fantastic to get support from institutional investors and to also have the funds necessary to finalise the DFS,” Mr Sage commented.
“Both the drilling and metallurgical work is almost complete and the results will be available in September.”
Shares in European Lithium were down 1.47 per cent and were trading at 6.7 cents at 2:26 pm AEST.