European Lithium Ltd (ASX:EUR) (FRA:PF8) (VIE:ELI) has agreed to drawdown a further $2 million from its existing finance facility with Winance Investment LLC.
Funds received under the drawdown will be used to progress the definitive feasibility study on the Wolfsberg Lithium Project, which is anticipated to be $1.565 million during the forthcoming quarter.
Approximately $435,000 is also intended to be used for general working capital.
Shares today have traded up to 8.4 cents, which was 5% higher than yesterday’s close and an increase from 7.3 cents on December 23, 2019.
Substantiated by independent analysis
Winance CFO Waqas Ibrahim said: “Winance’s commitment towards European Lithium and belief in the Wolfsberg project has been substantiated by the independent analysis and studies conducted recently.
“Winance is entirely satisfied in the development of the project and adept strategies implemented by management.
“Winance has decided to extend our support to European Lithium and provided reasonable assurance to the management that Winance is still holding the majority of the shares resulting from the conversion of the first tranche.”
The drawdown is occurring by way of issue of 2,000 convertible notes to Winance.
The notes convert to fully paid ordinary shares using a price determined by reference to European Lithium’s then prevailing market price, with a floor price of 5.5 cents per share
Board changes
European Lithium has also appointed Tim Turner as a non-executive director of the company with effect from March 4, 2020, with Stefan Müller having resigned from the board.
Turner is the senior partner of accounting and advisory Firm, HTG Partners.
He heads the audit and assurance division and is responsible for the issue of audit opinions for self-managed superannuation funds through to full reporting entities.
“Strong industry knowledge”
Turner also has in excess of 30 years’ experience in business development, structuring and general business consultancy.
On the board changes, chairman Tony Sage said: “We’re extremely pleased to have Tim join us and look forward to welcoming him to our board.
“Tim has many years’ experience on listed company boards and has strong industry knowledge.
“I would like to express my gratitude to Stefan for his work and commitment to the company, particularly in respect to the company’s exposure in the German and Austrian markets.”