JOHANNESBURG (miningweekly.com) – The developer of the Wolfsberg project in Austria, European Lithium, on Wednesday announced that it would place shares to raise up to $4-million, with an option to raise an additional $1-million.
The company would undertake the placement at an issue price of $0.225 a share, which represented a 40% premium to the volume-weighted average price of European Lithium’s share price on the ASX for the 15 days leading up to December 4.
A free-attaching unquoted option would also be issued for every four shares applied for under the placement and 14.40-million options would be issued to facilitators of the placement, exercisable at $0.25.
European Lithium said it would use the funds to expedite the definitive feasibility study drilling programme at the Wolfsberg lithium project to better understand the size and the value of the deposit in zone 2, where drilling earlier this year showed a prospective area.
Wolfsberg is an advanced project with an inferred resource of 3.7-million tonnes. European Lithium is aiming to start operations in 2019/20.