Sign up Australia
Proactive Investors - Run By Investors For Investors

European Lithium raises capital at premium to fund resource expansion activities

The capital raising will assist in further developing the Wolfsberg Lithium Project.
picture of map of Europe with lithium projects in progress
Wolfsberg is relatively well progressed compared with its European peers

European Lithium Ltd (ASX:EUR) is undertaking a placement priced at $0.225 to raise up to $4.0 million to assist in funding the Wolfsberg Lithium Project in Austria.

The company also has the option to raise up to $1 million to facilitate oversubscriptions.

Significantly, the placement's price represents a 40% premium to the 15-day volume weighted average price (VWAP), suggesting the prospect of raising $5 million appears achievable.

Participants in the share placement will receive an attaching 1:4 unlisted option exercisable at $0.25 and expiring 31 May 2019.

Funding provides financial support for resource expansion activity

The capital raised will be used to accelerate the company’s definitive feasibility study (DFS) drilling program at Wolfsberg.

This is expected to provide the company with a better understanding of the size and value of the deposit in zone 2 which has demonstrated the potential to host a resource extension.

Management expects to finalise the pre-feasibility study (PFS) by the first quarter of 2018 and have the DFS completed by the third quarter.

READ: European Lithium schedules delivery of pre-feasibility study

Tony Sage, chairman said, "This is a very exciting period for the company with strong support coming from UK and European investors who have bought in excess of 120 million of the company's shares in the last two months."

Investors on the lookout for quality projects in safe jurisdictions

This trend echoes commentary from a number of ASX listed companies that attended the recent Mines and Money conference in London.

Northern hemisphere investors have a healthy appetite at the moment for quality projects in safe jurisdictions with ready access to end markets, a label that certainly applies to European Lithium.

The company’s shares traded as high as $0.33 before closing at $0.32, up 10.3% on the previous day.

Board appointment provides financial expertise and regional experience

The October appointment of Stefan Muller as an independent non-executive director has been strategically important for European Lithium.

He brings 25 years of experience in financial markets and investment banking to the group and is the chief executive officer and founder of DGWA, a German-based investment consulting firm.

DGWA along with Somers and Partners and Wimmer Financial acted as corporate financial advisors to the placement.

News flow surrounding the release of the PFS and DFS are potential share price catalysts in 2018.

View full EUR profile View Profile

European Lithium Ltd Timeline

Related Articles

1509542969_Lithium_381225958_58c8743f4a122.jpg
November 02 2017
Pan Asia Metals is building strength in depth in South East Asia
tungsten.jpg
August 02 2017
Ormonde Mining is now only a year away from production at Barruecopardo
American-Lithium---Fish-lake-exploration.jpg
January 31 2017
American Lithium holds a commanding land position at Fish Lake in Nevada

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use