Australian exploration and development company European Lithium (EUR) has raised A$2.1-million to continue to advance its Wolfsberg project, in Austria – close to some of the European Union’s (EU’s) largest lithium import markets.
The share placement at $0.045 a share was strongly supported by a number of existing shareholders and institutional investors, the company reported on Tuesday.
Funds raised from the placement will be applied to metallurgical test work of bulk samples from the Wolfsberg project to qualify product specifications for offtake partners and end-use applications in support of the company's definitive feasibility study and to redeem convertible notes issued to Winance with a face value of $500 000.
EUR stated that its strategic engagement with Talaxis and subsequent appointment of Kimon Gkomozias as executive director to lead its development strategy in Europe would assist the company tap into the European Battery Alliance network, which is estimated to be worth €250-billion from 2025 onwards.
“EUR is well timed and well positioned to benefit from Europe's unprecedented need for lithium, contributing to the European integration of the lithium supply chain and capitalising on the resulting growth of the regional lithium ecosystem,” said Gkomozias.
The EU has started an ambitious plan to build and reshape its battery supply chain. The European Commission's recently announced Action Plan on Critical Raw Materials is looking at the current and future challenges and actions to reduce Europe's dependency on third-world countries, diversifying supply from both primary and secondary sources and improving resource efficiency while promoting responsible sourcing worldwide. It contains 30 critical raw materials. Lithium, which is essential for a shift to e-mobility, has been added to the list for the first time.