European Lithium Ltd (ASX:EUR) (FRA:PF8) (NEX:EUR) chairman Tony Sage has demonstrated a big vote of confidence in the company’s integrated lithium supply strategy in Europe by acquiring a further 4 million shares.
The transactions of two lots of 2 million shares on January 22 and 23 were via off-market purchases for an indirect interest and had a total value of $340,000.
Strong support from directors
Sage’s support of the company follows recent purchases by two other company directors.
Earlier this month, non-executive director Malcolm Day purchased $200,000 worth of options in the company exercisable at 10 cents and expiring on June 30, 2020.
Day’s 20 million unlisted options were via an off-market purchase and add to his shareholding of around 14.5 million shares.
In September 2018, non-executive director Stefan Müller purchased 200,000 shares through on-market trades with a total value of $25,000.
This increased Müller’s total holding in the company to 850,000 shares.
The directors have shown their support of EUR at the start of an important period in the company’s development.
There are a number of near-term catalysts as EUR advances a definitive feasibility study (DFS) for the Wolfsberg Lithium Project in Austria, which is now on a fast-track to development.
Primary catalysts in the DFS work include drilling to upgrade the resource, metallurgical test work and pilot processing.
Working towards higher mining rate
Upgrading the resource will allow the DFS to be based on a higher annual mining rate of up to 800,000 tonnes.
Inspecting pegmatite at Wolfsberg.
A scope of work for the DFS engineering design and integration of third-party studies has been completed by The Mineral Corporation (TMC) together with DRA Global.
DFS work at full pace
This has been based on the April 2018 pre-feasibility study which identified geology, hydrogeology, mining, metallurgy, land access and environmental areas to be investigated for the DFS.
These areas are now being addressed in the DFS.
SRK Consulting has also prepared a scope of work for the optimised mine design and increased declaration of mineral reserves, based on the PFS and results of the upcoming drilling program.
Samples being tested at pilot plant
Complex metallurgical test work and pilot processing also form part of the DFS and German company Dorfner Anzaplan is carrying out these tasks.
A 300-tonne sample with 150 tonnes each for Amphiboltite Hosted Pegmatite (AHP) and Micaschist Hosted Pegmatite (MHP) has been sent to Dorfner Anzaplan’s testing facilities.
This testing through a pilot plant is aimed at ensuring a high-quality final lithium hydroxide is produced using efficient and competitive metallurgical processes.
Increasing European interest
Increasing interest is being shown in Europe for EUR’s strategy on the back of burgeoning demand.
This interest is being boosted by a recent listing on the London-based NEX Exchange Growth Market.
The company is also investigating a listing on the Prime Market of the Vienna Stock Exchange (VSE) to complement the NEX listing and EUR’s existing Frankfurt and ASX listings.