European Lithium Ltd (ASX:EUR) (FRA:PF8) (VIE:ELI) (AQSE:EUR) has made further progress with its strategy to be the first local supplier of lithium into an integrated European battery supply chain by receiving $1 million, before expenses, from Winance Investment LLC.
This payment forms part of an A$10 million finance facility previously established with Winance.
These funds follow the company recently forging a key partnership with global EV technology metals leader Talaxis Limited, a wholly-owned subsidiary of Noble Holdings.
EUR has also recently agreed with a number of creditors and short-term loan holders to convert almost $743,000 of current debt into equity, subject to regulatory approval.
“Very good relationship”
Chairman Tony Sage said: “We are very pleased not only to have announced Noble Group as partners but also Winance in delivering on their promise to keep funding the project.
“We have had a very good relationship even through the COVID-19 lockdown.”
In March 2020 EUR agreed to draw down a further A$2 million under Tranche 2 of the Winance facility, and the 2,000 convertible notes were issued on March 10, 2020.
However, the funding was delayed as a result of COVID-19 and the notes were subsequently held in escrow pending receipt of funds.
EUR “can deliver”
Winance CFO Waqas Ibrahim said: “We are pleased, now that the COVID-19 restrictions have been eased, to release the funds under our existing facility with European Lithium.
"We strongly believe the management of EUR can deliver on bringing the Wolfsberg project into production.”
The strategic engagement agreement with Talaxis will see the parties forge a partnership, which will provide many advantages for EUR, including completing a DFS for the Wolfsberg Lithium Project in Austria.
Talaxis will use its expertise to assist in managing and establishing commercial relationships, contract negotiations and strategic market research.
Of this agreement, Sage said: “Given the unprecedented times we live in it is a huge coup for EUR to have secured the engagement with Talaxis.
“This 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.”