European Lithium has secured a A$10m finance facility to advance the completion of a definitive feasibility study (DFS) at the Wolfsberg Lithium Project in Austria.
This comes on the back of recent key developments for the Company including the successful PFS results referred to above, the appointment of new CEO, Dietrich Wanke, the appointment of an experienced project director, Christian Heili, the ongoing work in commencing the DFS activities and ongoing negotiations to secure a strategic European partner.
The A$10m facility allows the Company to ensure its DFS process is fully funded whilst retaining flexibility in the event negotiations for a strategic partner result in alternative funding, such as a cash injection into the Project, through development and beyond. The facility has been entered into with MEF I, L.P. (Magna or Investor) for up to A$10m by way of the issue of convertible securities in the Company. An initial amount of A$2.5m will be available for drawdown immediately following completion of definitive transaction documents with a further A$7.5m available in tranches upon the Company meeting key milestones relating to the DFS process and standard conditions precedent.
Tony Sage, Chairman, commented “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.”