European Lithium [ASX:EUR] Goes for $30 million for Wolfsberg Lithium
Shares of ASX-listed miner European Lithium [ASX:EUR] are down 11% today after it announced a $30 million capital raise for their flagship project, Wolfsberg Lithium Project.
$30 million for Wolfsberg Lithium Project
European Lithium is raising the money to ‘rapidly advance’ works at the Wolfsberg Lithium Project.
Shares will be issued to global institutional and sophisticated investors at 13 cents. Investors will also be issued one option for every two shares at the exercise price of 18 cents and expiring on 31 March 2025.
The placement will be managed by Evolution Capital Pty. Evolution will receive 6% of the money raised and, as long as shareholders give their approval, they’ll also get an attaching option for every two placement options.
European Lithium plans to use the money to fund several aspects of the project. These include strategic land acquisition, a resource extension drill program at Wolfsberg’s Zone 2, the first stage of the project development metallurgical test work, and SRK consultancy fees for the project’s JORC compliance.
European Lithium’s Chairman Tony Sage said:
‘We are delighted to have received firm commitments to raise A$30 million (before costs) with the proceeds to be used to significantly advance the development of the Wolfsburg Lithium Project, as we continue to progress toward 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.’
European Lithium aiming to be first local lithium supplier
Located in Austria, European Lithium expects the project will provide lithium supply to European automakers. So far, testing results have shown the project will be able to produce battery-grade lithium carbonate and lithium hydroxide from its ore.
It’s certainly a good time to get into lithium with lithium prices at record highs and Europe looking to accelerate its energy transition.
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At time of writing shares for European Lithium are trading at 14.2 cents, down from yesterday’s close at 16 cents.