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- European Lithium (EUR) is set to undertake a buy-back of up to 100 million shares to “deliver shareholder returns”
- The shares represent 6.7 per cent of what’s on issue for an estimated cost of $6.9 million
- The company believes its current share price does not reflect the underlying value of its assets, the EUR trading at a “significant discount” compared to its peers
- As such, European Lithium says it sees the buyback as a strategic opportunity in its capital management strategy
- European Lithium shares are trading at 5.5 cents at 1:55 pm AEDT
European Lithium (EUR) is set to undertake a share buy-back of up to 100 million shares to “deliver shareholder returns”.
The shares represent 6.7 per cent of what’s on issue for an estimated cost of $6.9 million.
The company said it believed its shares were currently trading at a “significant discount” compared to its peers considering its “robust” definitive feasibility study for its Wolfsberg lithium project in Austria and the imminent completion of a contract with Sizzle Acquisition Corp, along with an intended listing on the NASDAQ.
“The board believes the company’s current share price doesn’t reflect the underlying value of the company’s assets,” European Lithium Executive Chairman Tony Sage said.
“It’s a fantastic opportunity to buy back shares at a significant discount and add value to our remaining shares on issue.”
After the divestment of the Wolfsberg project, EUR said it anticipated “a period of minimal exploration expenditure” on the newly-acquired Austrian lithium projects until there was “significant de-escalation or resolution of the Ukraine conflict”.
As such, the company said it sees the buyback as a strategic opportunity in its capital management strategy.
The buyback is expected to begin on April 17 and last until January 31, 2024, and the company reserves the right to suspend or terminate the share buy-back at any time.
European Lithium shares were trading at 5.5 cents at 1:55 pm AEDT.
