European Lithium Ltd (ASX:EUR) (FRA:PF8) (VIE:ELI) (AQSE:EUR) has received further indication of the confidence in its integrated European lithium supply strategy by securing a $10 million finance facility.
The company has executed binding documentation with Winance Investment LLC, an independent global firm specialising in corporate financing, for the facility.
In welcoming the facility, European Lithium chairman Tony Sage said: “Securing this additional funding provides the company flexibility and allows us to continue to negotiate with potential strategic partners.”
Any funds advanced under this facility will be used to repay the residual amount owing to Magna, to fast-track completion of a DFS at the Wolfsberg Lithium Project in Austria and for general working capital.
Dialogue with institutional parties
EUR continues to engage in dialogue with institutional parties as it focuses on engaging a strategic investor to alleviate, or minimise, the funds it draws down under the Winance Finance Facility.
The facility is by way of the issue of convertible securities in the company.
An initial amount of $2 million is available for immediate drawdown and this will occur at EUR’s election prior to 31 October 31, 2019.
Further drawdowns of $1 million each are available upon full conversion of the notes from the previous drawdown, subject to a cooling off period.
“Strengthens long-term financial structure”
Winance CEO and founder Cristine Nine said: “This arrangement strengthens European Lithium’s long-term financial structure and secures their ongoing development and expansion which will help both companies achieve their organisational goals.
“This new investment round will enable European Lithium to further capitalise on its position as a growing company in mining exploration and development.”
Winance, which focuses on small and mid-sized listed companies to help them secure funding needed for their growth, worked on the EUR transaction with Kapital Global Advisors Limited.
Kapital Global is Winance’s exclusive and strategic partner for Australia and collectively the two focus on ASX-listed and private opportunities.
A UAE-based advisory firm, Kapital is led by Kapil Singh and focuses on Asia Pacific, North & South America, Europe and Africa.