The company’s board is considering the spin-off and main listing of its Austrian subsidiary in the PRIME MARKET on VSE as part of its integrated European lithium-ion battery supply strategy.
If this transaction proceeds, the company will strive for a rank in the top 40 companies on the VSE and participation in the ATX prime market index.
“Logical next step”
Chairman Tony Sage said, “Shifting the company’s main listing to the VSE is the logical next step.
“This will provide greater access to the company’s shares in these markets by Austrian institutions and private wealth clients, something that all our key stakeholders have asked for.
“There is substantial and growing local interest and support for the Wolfsberg Lithium Project from local state and Federal governments.
“This support is essential to enable us to achieve our goal to be the first lithium supplier into an integrated European battery supply chain.”
In October 2017 EUR was the first Australian company admitted to the VSE and the listing has substantially increased exposure of the company and its Wolfsberg project to European investors.
This has enabled Austrian institutions and private wealth clients to become shareholders.
Since the VSE listing, the percentage of European shareholders on the register has increased substantially.
Initial steps to enable the company to consider transitioning its main listing to the VSE have almost been completed.
This entails transforming the Australian company’s GmbH subsidiary to an AG, which is similar to the move from a PTY to an LTD company in Australia.
EUR will remain listed on the ASX for the foreseeable future.
The company is focusing on fast-tracking development of the Wolfsberg project.
In doing so, it has developed a strong management team with the appointments of a German CEO, Dietrich Wanke, and an experienced Austrian project director, Christian Heili.
A definitive feasibility study (DFS) is underway following up on a positive pre-feasibility study (PFS) in April 2018 that supported Wolfsberg’s economic viability as a future lithium mining operation.
Furthermore, drilling since the PFS was released has demonstrated Wolfsberg’s upside potential through an expanded resource.
The company has also secured a $10 million finance facility with MEF I, L.P. to ensure that the DFS process is fully funded.
This facility is in the form of a convertible note and EUR will draw down $2.5 million immediately after completing definitive transaction documents.
A further $7.5 million will be available in $2.5 million tranches upon the company meeting key milestones relating to the DFS process and other standard conditions.
This facility can be cancelled at any time, especially if the company is successful with any of the advanced discussions underway with several offtake and/or strategic partners.
Sage said securing this funding provided the company “an opportunity to fast-track completion of the DFS with a high degree of flexibility given the progress we have made in negotiations with potential partners.”