EVREuropean Lithium raises $30 million to expedite the Wolfsberg project in AustriaEuropean Lithium (ASX:EUR) has revealed joint venture partner EV Resources have appointed an expert geological consultancy on an exploration strategy for their jointly held lithium projects in Austria.GEO Unterweissacher – an engineering organization for geology and geotechnics – has already reviewed all the relevant data and samples at the Weinebene project and has recommended that 80% owner EV Resources (ASX:EVR) carry out a diamond drilling program to test its pegmatite mineralisation.
European Lithium carries the remaining 20% interest in the project.
Weinebene is immediately adjacent to European Lithium’s Wolfsberg deposit and is believed to host extensions of the mineralisation found there.
Both companies will consider the report, which presents two options and decide on a drill program to extend the Wolfsberg mine and the strategic satellite projects.
Permitting is expected to take 8-12 weeks to complete, with the drill program expected to take 8-10 weeks once underway.
GEO Unterweissacher has also reviewed and advised on geological evaluation programs across six other projects.
European Lithium executive chairman Tony Sage said the move to action a drill program at Weinebene is positive for the company’s Wolfsberg project and the potential to expand known lithium resources in the region.
Wolfsberg Lithium ProjectWolfsberg has a current resource of 12.9Mt grading 1% lithium oxide and is currently the subject of Definitive Feasibility Study work that is due imminently.
The project is independently verified to contain ore suitable for processing into lithium-grade products and is perfectly placed to feed Europe’s hunger for battery metals.
European Lithium has received firm commitments from global institutional and sophisticated investors for a A$30 million placement at A$0.13 per share. The initial offer was oversubscribed 4 times over. The funds will be used to advance the company’s Wolfsberg lithium project in Austria, including for:
- Strategic land acquisition;
- A resource extension drill program of Zone 2;
- Stage 1 of project development metallurgical test work for by-products;
- SRK consulting for JORC compliance; and
- For general exploration purposes and working capital.
Investors will also be issued one option (exercise price $0.18, expiring 31 March 2025) for every two shares issued.
Lead manager of the placement, Evolution Capital, will be paid 6% of the amount raised and – subject to shareholder approval – be issued one attaching option for every two placement options, on the same terms as the placement options.
Lithium supply in the heart of EuropeThe Wolfsberg project sits within the heart of Europe and the company is confident it will provide significant lithium supply as the EV revolution sweeps through European automakers.
“The proceeds [will] be used to significantly advance the development of the Wolfsberg Lithium Project, as we continue to progress towards battery grade lithium production,”
European Lithium (ASX:EUR) chairman Tony Sage said.
“While current work in the Ukraine has been suspended, we remain 100% committed to the people of Ukraine and look forward in time to continuing to develop Europe’s largest hard rock asset.
Results from process testing demonstrate battery grade lithium carbonate and lithium hydroxide can be produced from Wolfsberg ore.
