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.
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.