PERTH (miningweekly.com) – Dual-listed European Lithium will raise A$6.5-million in a share placement to sophisticated and professional investors to finalise the definitive feasibility study (DFS) on its Wolfsberg lithium project, in Austria.
The company on Tuesday said that the shares would be placed at a price of 6.25c each through the company’s existing placement capacity, with investors also issued one listed option, with an exercise price 7.5c each and expiring in April 2024, for every two shares issued.
“It's fantastic to get support from institutional investors and to also have the funds necessary to finalise the DFS. Both the drilling and metallurgical work is almost complete and the results will be available in September,” said European Lithium chairperson Tony Sage.
A previously completed prefeasibility study into the Wolfsberg project estimated that the project would have a mine life of some ten years, based on a mining rate of 720 000 t/y, to deliver 10 129 t/y of lithium hydroxide. The DFS is aiming to increase this mining rate to around 800 000 t/y, and to further increase the mine life.
European Lithium is hoping to be in production by the end of 2023.
The placement is lead managed by Evolution Capital Advisors, which will be paid 6% of the amount raised, and be issued 20-million listed options and 2-million fully paid ordinary shares.