European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has caught the eye of global institutional and sophisticated investors, raising A$30 million to accelerate work on its Wolfsberg Lithium Project in Austria.
Leading domestic and overseas investors cornerstoned the fundraise, buying in at A$0.13 a share to raise the capital in a 4x oversubscribed placement.
Investors will also secure one option, exercisable at A$0.18 before March 31, 2025, for every two shares they picked up under the offer.
EUR will use the cash injection to fund several key initiatives, including:
- A strategic land acquisition;
- A resource extension drilling program at Wolfsberg’s Zone 2 prospect;
- Stage one metallurgical test-work on Wolfsberg’s ore;
- Advice from consultancy SRK on the project’s JORC compliance; and
- General exploration and working capital requirements.
Progressing to battery-grade lithium production
Describing the funding runway, European Lithium chair Tony Sage said: “We are delighted to have received firm commitments to raise A$30 million (before costs) …
“The proceeds will be used to significantly advance the development of the Wolfsberg Lithium Project as we continue to progress towards battery-grade lithium production.
“While current work in the Ukraine has been suspended, we remain 100% committed to the people of Ukraine and look forward in time to continuing to develop Europe’s largest hard rock asset.
“I would like to thank shareholders for their support to date and we look forward to a very exciting 2022 for the company.”
Developing a European lithium resource
EUR’s Wolfsberg Project is strategically located in Europe’s heart, and it’s poised to supply a key battery ingredient as the EV revolution sweeps through European automakers.
So far, the company’s process testing indicates that Wolfsberg ore can generate battery-grade lithium carbonate and lithium hydroxide — components that fuel the burgeoning green energy industry.
Wolfsberg’s potential is reflected in this capital raise: originally, European Lithium was out to raise A$20 million, but strong demand triggered a A$10 million upsize on Tuesday.
Sydney stockbroker Evolution Capital beat the drum for the placement, and it’ll receive 6% of the amount raised for its efforts.
Subject to shareholder approval, the firm will also walk away with one attaching option for every two placement options on the same terms as above.