European Lithium Ltd (ASX:EUR) has received a strong vote of confidence as it drives the Wolfsberg Lithium Project in Austria towards development with A$6.5 million raised to finalise a definitive feasibility study (DFS).
The company has received commitments for a placement to sophisticated investors at $0.0625 per share.
“Fantastic to get support”
EUR chairman Tony Sage said: “It's fantastic to get support from institutional investors and to also have the funds necessary to finalise the DFS.”
As well as the placement shares, investors will also be issued one listed option for every two shares issued.
These options have an exercise price of A$0.075 and will expire on April 19, 2024.
Use of funds
Funds raised will be used to fund completion of the DFS at the advanced Wolfsberg project, for general exploration purposes and working capital.
Sage added: "Both the drilling and metallurgical work is almost complete and the results will be available in September."
The placement is lead managed by Evolution Capital Advisors Pty Ltd.
EUR anticipates first production from the project to commence in 2023 and it is strongly placed to become the first local lithium hydroxide supplier in the European battery supply chain.
READ: European Lithium drilling at Wolfsberg Project hits high grade Li2O
In June the company hit high-grade pegmatite intersections of up to 1.91 metres of true thickness with up to 2.4% lithium oxide (Li2O) in ongoing phase 2 resource extension drilling.
The aim of the infill drilling is to increase the existing JORC reserves for the DFS to 11 million tonnes (+74.3%) at 1% Li2O and to show extensions of the ore body for future drilling programs.