logo-loader
viewEuropean Lithium Ltd

European Lithium strengthens financial position through debt conversion

The company has reached agreement with a number of creditors and short-term loan holders to convert $742,918 of current debt into equity.

European Lithium Ltd - European Lithium strengthens financial position through debt conversion
EUR has this week secured a key partner in global EV technology metals leader Talaxis

European Lithium Ltd (ASX:EUR) (FRA:PF8) (VIE:ELI) (AQSE:EUR) has strengthened its financial position by converting $742,918 of current debt into equity.

This follows the company arriving at an agreement with a number of creditors and short-term loan holders, subject to regulatory approval.

Debts will be converted based on a share price of 4.5 cents with a free attaching 1 for 1 unlisted option with an exercise price of 5 cents expiring on July 31, 2022.

This price of 4.5 cents has been determined based on the company’s 20-day VWAP prior to May 22, 2020.

The debt conversion comes as the company continues to strengthen its strategy of working to be the first local supplier of lithium into an integrated European battery supply chain.

Key partner secured

A key move in this process came this week through securing a partner in global EV technology metals leader Talaxis Limited.

The signing of a strategic engagement agreement will see Talaxis and EUR forge a partnership with many resulting advantages for EUR, including completion of a definitive feasibility study for the Wolfsberg Lithium Project in Austria.

This arrangement also sees the appointment of Talaxis managing director Daniel Mamdou-Blanco, a highly experienced mining and finance executive, as a strategic advisor to EUR.

Talaxis will provide a number of services, including managing and establishing commercial relationships, contract negotiations and strategic market research.

“Huge coup”

The agreement prompted EUR non-executive chairman Tony Sage to state: “Given the unprecedented times we live in it is a huge coup for EUR to have secured the engagement with Talaxis and above all the vast knowledge and experience of Daniel.

“The appointment will expedite the DFS for the company’s Wolfsburg’s Lithium Project as the world starts to move out of the pandemic and into an EV future, especially in Europe.”

Debt conversion terms

With the debt conversion, the maximum number of securities to be issued is 16,509,308 fully paid ordinary shares and the same number of options.

The conversion process includes a portion of amounts, 1,643,288 shares and 1the same number of options, owing to company directors.

This will be subject to shareholder approval at the company’s next general meeting.

The remaining shares and options are proposed to be issued under the company’s LR 7.1 capacity.

Quick facts: European Lithium Ltd

Price: 0.045 AUD

ASX:EUR
Market: ASX
Market Cap: $27.04 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of European Lithium Ltd named herein, including the promotion by the Company of European Lithium Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Mining Capital turnout 'a good cross-section of industry sentiment'

Alastair Ford looks back on this week's Proactive Investors Mining Capital conference in London. ''The room was full throughout the morning, standing room only at some points throughout the day and a huge amount of interest in the networking room during the breaks''. ''It was...

on 4/5/18

2 min read