EUROPEAN LITHIUM LIMITED, page-2954

New article in the Austrian newspaper

https://www.kleinezeitung.at/wirtschaft/wirtschaftktnhp/6242458/BMW-als-Kunde_Kommt-doch-Bewegung-in-den-LithiumAbbau-in-der-Koralpe

i have ist translate with Google

on the much discussed topic of resistance against mining, there is also something in the article

Is there any movement in the lithium mining in the Koralpe?

The resumption of lithium mining in Carinthia has been dragging on for years. The company European Lithium has merger plans and wants to get listed on the tech stock exchange Nasdaq in the USA. There is now an acceptance agreement with BMW.

After many announcements and postponements concerning the mining and processing of lithium on the Koralpe, the Australian company European Lithium apparently wants to reposition itself. Through a merger with the US company Sizzle, the company is to be listed on the US technology exchange Nasdaq. The group wants to raise money from investors under the name "Critical Metals Corporation". An important "milestone" was recently reached with a binding acceptance agreement with the car manufacturer BMW.

Shortly before Christmas, the registration statement was filed with the US Securities and Exchange Commission (SEC). "We are confident that we will receive a positive response," European Lithium explained in a written statement in response to an enquiry from the Kleine Zeitung. The Wolfsberg project, as the possible mining on the Koralpe is called by the company itself, would then be fully owned by Critical Metals Corporation.

Pennystock

The merger partner Sizzle is a "SPAC". SPAC stands for Special Purpose Aquisition Corporation, i.e. companies without business operations whose sole purpose is to buy companies or to be available as a shell for mergers. Often, investors invest in SPACS or new companies emerging from them without being given concrete goals or timetables for business development. Critical Metals will have an enterprise value of $838 million, of which $750 million is attributable to European Lithium, according to the company. On the Frankfurt stock exchange, however, European Lithium shares are "penny stocks", i.e. only worth a few cents, but the price has recently risen somewhat.

The management around supervisory board chairman Tony Sage and CEO Dietrich Wanke continues to keep its cards close to its chest as to whether, after the many announcements since 2016, money will actually flow to Austria in the near future. However, "apart from projects in Portugal, where lithium mining has a long history", there is no further developed project in Europe that has already started or completed a final feasibility study. By which Wolfsberg is meant.

Feasibility study underway

"Our final feasibility study is well advanced," the statement says. The preliminary feasibility study, assuming a much lower lithium price at the time, had already confirmed "that the project is robust". According to international reporting standards, Wolfsberg expects 12.9 million tonnes of lithium in the first mining zone. According to the company, the results of the detailed feasibility study should be available in the first quarter.

Only if the results are positive, the production of lithium concentrate could start in 2025 at the earliest, whereby European Lithium assumes that no environmental impact assessment is required. However, the water requirement for the chemical conversion of the rare metal into lithium hydroxide is very high, which is why opposition to mining had already formed. In order to get a positive mining decision for Wolfsberg, "Critical Metals" or European Lithium must present a concrete and financially secured operating plan. After six months of inactivity, the decision would be null and void.

The company does not give any further details about European Lithium's purchase agreement with BMW, which was reached shortly before Christmas. The car manufacturer confirms the agreement, but also does not give any details.