European Lithium secures A$10m funding
PERTH (miningweekly.com) – Junior European Lithium has secured a A$10-million funding facility to repay its debt, fast-track the completion of a definitive feasibility study on the Wolfsberg lithium project, in Austria, and to fund general working capital.
The finance facility, agreed with Winance Investment, will be done through the issue of convertible securities in European Lithium.
An initial amount of A$2-million is available for immediate draw-down prior to the end of October this year, while further draw-downs of A$1-million each are available on the full conversion of the notes from the previous draw-down, and subject to a cooling-off period.
The Winance finance facility will replace an existing A$10-million facility with Magna, under which a total of 638 042 convertible notes, from the original 1.84-million, remain outstanding.
European chairperson Tony Sage on Wednesday said that securing the additional funding provided the company with flexibility, and allowed European to negotiate with potential strategic partners.
European continues to engage with institutional parties and is focused on engaging a strategic investor to alleviate or minimise the funds that will be drawn down under the Winance facility.
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