Ireland is not normally what comes to mind when you think about lithium, but Australian, German and US-listed company European Lithium Ltd (ASX: EUR, FRA: PF8, OTC: EULIF) appears set to go after the mineral in the Republic of Ireland after taking on a project in an underexplored territory south of Dublin.
European Lithium has entered a Heads of Agreement with UK-based company Technology Metals plc to purchase all shares in the latter’s subsidiary LRH Resources Ltd, which controls the Leinster Lithium Project, comprised of 23 prospecting licences across 761 square kilometres.
According to this agreement, 1,234,568 shares held by European Lithium in Critical Metals Corp (NASDAQ: CRML) – an exploration and development company created through European’s merger with Sizzle Acquisition Corp (NASDAQ: SZZL) – were transferred at a price of US$8.10 per share, for consideration of US$10 million.
The Leinster Lithium Project is split into two blocks – North Leinster and South Leinster – and diamond drilling in the south has picked up grades of 2.57 percent lithium oxide at the Knockeen prospect, where lithium-bearing spodumene pegmatites have been identified.
Mineralisation across the licences sits along the East Carlow Deformation Zone, which is linked to major spodumene occurrences within the province, where the presence of spodumene was first picked up in the 1970s.
The project is also situated within the same tectonic zone and along strike to the Avalonia project, which is being explored by Blackstairs Lithium – a joint venture between International Lithium Corp (ILC) and Ganfeng Lithium Corp, the latter being China’s largest – and the world’s third largest – lithium compound producer.
European Lithium chairman Tony Sage said the acquisition was proof of the company’s interest in building its portfolio in various territories across the continent.
“The acquisition shows our commitment to continue expanding in the European lithium sector and illustrates our capability to identify and secure ground in highly prospective lithium provinces, leveraging our world class exploration and project development expertise, combined with a strong balance sheet,” he said.
“This also demonstrates the value of our investment in Critical Metals Corp.
“As we move forward, we can utilise the investment again and again without depleting our cash reserves”.
European Lithium has been trading at 5.6c.