European Lithium (ASX:EUR) signs MoU with Traxys for Wolfsberg development

• European Lithium (EUR) signs a memorandum of agreement with Traxys Europe S.A for the development of the Wolfsberg Lithium Project in Austria
• The two parties will negotiate suitable commercial terms for a product offtake and marketing agreement for EuR’s lithium hydroxide and any by-products from the project
• Traxys will also support the company to secure working capital and other project financial facilities for the development of the project
• European Lithium last traded at 10.5 cents on December 21

European Lithium (EUR) has signed a memorandum of agreement with Traxys Europe S.A for the development of the Wolfsberg Lithium Project.

The multi-tiered, non-binding MOA will support the development and commercialisation of the Austrian project.  

Under the deal, the two parties will negotiate suitable commercial terms for a product offtake and marketing agreement for European Lithium’s lithium hydroxide and any by-products from the Wolfsberg Project, if applicable.

EUR has granted Traxys exclusivity until the end of the first quarter of 2022 to finalise the agreement.

Traxys will also support the company to secure working capital and other project financial facilities for the development of the project. The parties will also discuss the potential for direct investment by Traxys and to further align their interests for the commercialisation of the Wolfsberg Project.

EUR Chairman, Tony Sage, said finalising an offtake agreement is another key milestone for the company.

“In the current high lithium price environment, partnering with Traxys and leveraging their expertise will achieve the best result for shareholders while the Company retains flexibility,” Mr Sage said.

European Lithium last traded at 10.5 cents on December 21.