European Lithium Ltd (ASX:EUR) has secured a $10 million finance facility to fast-track the completion of a definitive feasibility study (DFS) at the Wolfsberg Lithium Project in Austria.
Notably, the financing facility entered into with MEF I, L.P. ensures the DFS process is fully funded.
Furthermore, with negotiations ongoing to secure a European strategic partner, the funding provides flexibility for potential partnership structures and alternative funding methods.
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European Lithium’s chairman Tony Sage said: “Securing the funding provides the company an opportunity to fast-track completion of the DFS with a high degree of flexibility given the progress we have made in negotiations with potential partners.”
The $10 million facility is in the form of a convertible note and European Lithium will draw down $2.5 million immediately following completion of definitive transaction documents.
A further $7.5 million will be available in $2.5 million tranches upon the company meeting key milestones relating to the DFS process and other standard conditions.
Aiming to be Europe’s first lithium producer
European Lithium’s next major milestone on the road to becoming Europe’s first lithium producer is the commencement of the DFS.
The DFS will follow on from a positive pre-feasibility study (PFS) in Apirl 2018 that supported Wolfsberg’s economic viability as a future lithium mining operation.
Furthermore, drilling since the PFS was released has demonstrated Wolfsberg’s upside potential through an expanded resource.