Triple listed European Lithium on Thursday announced that lithium developer Critical Metals Corp has entered into a share subscription agreement of up to $125-million with private alternative investment group GEM Global Yield Fund.
Proceeds from the facility would be used to fund the development of the Wolfsberg lithium project, in Austria.
European Lithium told shareholders that the funding package, along with additional funding secured through the term sheet with Obeikan Investment Group, would provide Critical Metals and European Lithium with significant capital to accelerate the development of the Wolfsberg project once the transaction with Nasdaq-listed Sizzle Acquisition Corp completed.
European Lithium last year announced a $750-million transaction with Sizzle under which it would sell down its interest in the Wolfsberg project, and merge with Sizzle through a newly formed lithium exploration and development company - Critical Metals Corp.
On completion of the transaction, European Lithium will be issued $750-million worth of new shares in Critical Metals, which will be listed on Nasdaq, representing a near 80% interest in the combined company.
European Lithium can also earn up to an additional 10% of the ordinary shares in Critical Metals Corp, subject to the ordinary shares of Critical Metals trading above $15 and $20 for any 20 trading days within any 30-trading-day period in the five-year period following closing.
“Receiving this significant and binding commitment is a huge milestone for the company. Combined with European Lithium’s recent deal with Saudi Arabia-based Obeikan Investment Group, the company and Critical Metals have secured approximately 65% of the total expected capex of the Wolfsberg project, bringing us closer to our stated goal to be the first local producer of lithium spodumene for the green energy transition in Europe,” said European Lithium chairperson Tony Sage on Thursday.
A previously completed definitive feasibility study into the Woflsberg project estimated that it would require a capital investment of $873-million to support a 8 800 t/y lithium hydroxide monohydrate (LHM) production rate over a mine life of nearly 15 years, with operating costs estimated at $19 409/t before by-product credits.
The study was based on two integrated operations - a mining and processing operation to produce a lithium concentrate and a hydrometallurgical plant to convert the spodumene into battery-grade LHM. The hydrometallurgical plant was planned to produce approximately 8 800 t/y LHM with a total production of approximately 129 000 t of LHM over the life-of-mine.
