The amendment provides CVS with additional time to obtain all necessary approvals for the transaction.
In accordance with the terms of the transaction and subsequent amendment European Lithium has received a further payment of $20,000 from CVS.
The total received is $70,000 of the $500,000 cash consideration with the remainder to be paid in the following instalments:
- $80,000 on completion of the transaction;
- $150,000 on the later of CVS completing a $1 million capital raising, or completion of the transaction; and
- $200,000 on the later of 60 days following the purchaser completing the $1 million capital raising, or completion of the transaction.
European Lithium will also receive $500,000 in share consideration through the issue of 25 million CVS shares at a deemed issue price of $0.02 each, on completion of the transaction.
Wolfsberg Lithium Project
European Lithium continues to focus on its flagship Wolfsberg Lithium Project in Austria, where it recently increased its JORC lithium resource estimate by 50%.
As a result of the recent successful deep drilling program, the resource now stands at 10.98 million tonnes grading 1.00% lithium oxide.
The current resource, which is located in Zone 1 has potential to be further increased by drilling at depth and along strike.
Furthermore, results from initial drilling in Zone 2 show wide high grade intersections, which confirm the potential of this area to mirror the resources of Zone 1.
The current Measured and Indicated resource will form the base data for the upcoming prefeasibility study (PFS).
Further drilling will be needed to upgrade the Inferred resource category to at least Indicated before it can be used in the PFS.
However, it shows the potential for production capacity increase and mine life extension, which in turn can add value to the project.