European Lithium Ltd (ASX:EUR) has divested its Paynes Find Gold Project in Western Australia to Cervantes Corporation Ltd (ASX:CVS).
The transaction has provided the company with valuable funding which is able to be used to fast-track its flagship Wolfsberg Lithium Project in Austria.
The total consideration for the transaction comprises $500,000 cash and $500,000 in Cervantes shares.
Parties agree to amended payment terms
To date, $270,000 of the cash component and the entire $500,000 share component has been received.
The parties have agreed to amend the payment terms of the remaining $230,000 cash consideration payable as set out below:
▪ $75,000 on or before 31 March 2018;
▪ $75,000 on or before 31 May 2018; and
▪ $80,000 on or before 30 June 2018.
READ: European Lithium hits 10-metre intersection in Zone II, nearly double the widest intersection of Zone I
Notably, European Lithium expected to receive the pre-feasibility study (PFS) on the Wolfsberg Lithium Project from its consultant before the end of last week.
The company endeavours to complete its review and release the results of the PFS by the end of this week.
Recent 10-metre intersection highlights Wolfsberg’s growth potential
Last week, the company outlined that it had completed its Zone II drilling program at the Wolfsberg Lithium Project in Austria.
All five holes showed numerous pegmatite intersections with one measuring 10.0 metres true width.
By comparison, the widest intersection seen in Zone I was 5.5 metres.
Geological evidence continues to build supporting the notion that Zone II can host significant lithium resources that can materially increase Wolfsberg’s future mine life.