European Lithium Ltd (ASX:EUR, FRA:PF8, VIE:ELI) has applied for admission to trading on London’s NEX Exchange Growth Market (NEX).
The Tony Sage-chaired company will list all its issued share capital on the exchange and expects to start trading on the London-based market on Monday, November 26, 2018 with the ticker EUR.
READ: European Lithium makes steady progress in advancing Wolfsberg Lithium Project
European Lithium expects the NEX Group growth market listing will increase its exposure and access to Europe-based investment markets.
Among these markets are the various UK investment markets.
European Lithium expects both its new listing and improved investor access will lead to better liquidity in the stock which has its primarily listing on the Australian Securities Exchange (ASX).
The Company’s securities also have secondary listings on the Frankfurt and Vienna stock markets.
European Lithium secures up to $10 million to fast-track Wolfsberg
European Lithium non-executive chairman Sage said, “the listing provides the company with many benefits.
“Providing European investors with greater access to invest and trade is key.
“We believe this move creates an important opportunity for European investors, giving them greater access to the lithium sector amidst the global transition to electric vehicles.”
A map of the Wolfsberg project in Austria
European Lithium’s wholly-owned flagship project is the Wolfsberg Lithium Project located in Austria.
The company has ambitions to become the continent’s first lithium producer with the project, supplying the battery metals input as European Union governments encourage the uptake of electric vehicles in the region.
The central European project is located 270 kilometres south of Vienna.
Wolfsberg has access to established rail and road infrastructure which could be used to distribute the company’s lithium to European markets.
READ: European Lithium Appoints project director for its advanced Austrian lithium project
European Lithium attracted a $10 million finance facility in September 2018 to enable it to complete a definitive feasibility study (DFS) for the project.
MEF I, L.P.’s flexible funding facility allows for a strategic partner to step in and provide alternative funding, such as cash for the project.
Cash may be drawn down in $2.5 million tranches, subject to milestones being met, with the first tranche already being drawn down.
The funded DFS by respected contractor SRK Consulting follows a strong pre-feasibility study (PFS) for the project, released in April 2018.
A sample from the project
The PFS for Wolfsberg supported its economic viability as a future lithium mining operation with a 10-12-year mine life.
The lithium project had a measured and indicated resource of 6.3 million tonnes at 1.17% lithium oxide at the time of the PFS – figures likely to be improved upon with additional drilling.
Wolfsberg’s PFS base case involved the company producing 620,000 tonnes a year run-of-mine for a net present value of A$343 million at an 8% discount rate (NPV8).
The company is hoping equipment and improved scheduling could lift the figure to 720,000 tonnes a year, giving Wolfsberg an NPV8 of A$442 million.
Wolfsberg’s accelerated case results in the measured and indicated resources of the base case being mined and processed in 10 years rather than 12.
The 20% increase in the processing rate would accelerate lithium hydroxide monohydrate production from about 8,400 tonnes a year to about 10,130 tonnes a year.