ASX Announcement14 November 2023Secured Notes Provide $1.32m...

ASX Announcement14 November 2023
Secured Notes Provide $1.32m Cash to FundOperationsHighlights
• $1.32 million cash investment after expenses received via secured notes issued toCPS Capital Group Pty Ltd (Note Holder);
• The notes are expected to be non-dilutive for Cyclone shareholders as they leveragesecurities held by Cyclone in European Lithium Limited (ASX:EUR)
• 1.34 million secured notes issued with a face value of $1.25, repayable in EUR sharesat a 5% discount to the EUR VWAP share price1.• Cyclone owns 62.8m EUR shares valued at $4.96 million as of 13/11/23. 55m EURshares will be used as security.
• The timing of the note repayment is at the discretion of the Note Holder after a non-repayment period of 90 days, with a maturity of 12 months.

The time is ticking on this. These EUR shares are earmarked for the development of the Iron Bear. Thus there is an urgency for EUR SP rapidly increasing. As the notes are secured by the EUR shares and repayable in EUR shares the question is will CLE SHs see the true value of the EUR shares. This deal has restrictions on when and how the EUR shares are cashed up which impacts on when and how value is added to CLE.

Delays in the timing of the EUR merger and the shuffling of funding begs to ask "would CLE been better off cashing up during the EUR buyback?"

We have 10 months left to payback, however in the interim we do not have full use of the shares as a funding mechanism. We need Sizzle to vote, get the deal consummated and the bell rung and the EUR share price to rocket over the next 2 months.